
Class -J±5kl_ 

Book.___^S_fiL"3_ 

Copyright N°_ 

COPYRIGHT DEPOSIT. 



^ 



How to Keep Farm Accounts 



A practical book for the practical farmer 

and a text book for use in 

Agricultural 

Schools, 



— BY— 
H. L. STEINER 



u Xif ELL. nut friend, thou art now jvst entering the last 
'' month of another year. If thou art a Man of Busi- 
ness, and of prudent Care, belike thou wilt now settle thy 
Accounts, to satisfy tin/self whether thou hast gained or lost 
in the Year past, and how much of either, the better to reg- 
ulate thy future Industry or thy common Expenses." 

POOR RICHARD'S ALMANACK. 



Toledo, Ohio 

STEINER & CO. 

Publishers 
1908 




[library of congres? 

1 we C»pl»s Receive. 

JAN 22 1908 

C9i>yii«m tntry 
Too- Z*L,l4tfff 
| CLASS A XXc! No, 





Ufll 



■■■;■? ! 



Copyright 1908 
By H. L. STEINER. 



This book is dedicated to the every-day 

farmer— the "master wheel" of 

prosperity 



PREFACE 




GREAT deal has been said about the need of a simple 
A system of accounts for the Farmstead— something pos- 

sible on the average farm every day of the year — one 
relieved of useless detail, and still show its earnings 
and expenses — it's owner's assets and liabilities. Tak- 
ing the conditions which govern actual work on the 
farm into consideration, nothing specific has yet been 
published for the practical farmer, and it is for him this book is 
written. It is elementary because many have had no opportunity 
to study bookkeeping, therefore the man who knows nothing about 
it has been kept in sight from cover to cover. 

The illustration given is introduced to show the application of 
the fundamental principles of accounting to the every-day routine 
of general farming. No special sets for stock, dairy or fruit farms 
is thought necessary because the principles of accounts are unchange- 
able and only vary in their application. All the farmer, dairyman, 
fruit-grower or stockman really needs is to fully understand the 
principles when no trouble will be experienced in arranging a system 
of accounts to suit his wants, which will vary to a certain extent on 
every farm and with each individual. 

Bookkeeping is simply a matter of record and to do it correctly 
only requires that the principles of debit and credit be understood. 
It is necessary on many farms and useful on all. The question ought 
not to be, shall I keep some simple set of books, but what form is 
the most practical? If this book will help you, its object will have 
been fulfilled. 



Preface to Second Edition 



The instant appreciation of the first edition of this book upon 
its introduction to the Agricultural world in the fall of 1906, signi- 
fied two things: First. There was a field — a need — for it. Second. 
That How To Keep Farm Accounts filled the need. 

At first glance, the practical farmer may think that an account 
with his farm is beyond his time and patience, but many things must 
be explained in a book used for home-study and as a text for agri- 
cultural schools. The simple principles of accounts are not as diffi- 
cult to understand as they would seem to appear at first sight, and 
neither is the actual keeping of accounts. 

The best way to learn them is to begin an account with one's 
own farm, and we suggest that after reading to paragraph 47, that 
an inventory be taken of your live stock, products, and implements. 
Then make a statement of what you owe and is owing you, as ex- 
plained in paragraphs 33 to 40. Following this, in a suitable book, 
which may be bought anywhere, make the opening entries as ex- 
plained in paragraphs 41 to 47, and you are ready to take care of 
each transaction as it may occur. 

To set yourself right, study the index when anything comes up 
which you do not fully understand. 

If you will do this for a few weeks you will have no trouble, 
and any theory about which you may be in doubt will take care 
of itself in due time. Therefore, to learn how to keep accounts — 
begin to keep your own books. No transaction will come up that 
you can not master if you only think so. 

Regarding the Cost of Production, remember this book is in- 
tended for practical use, therefore the matter relating to this sub- 
ject under the head of Approximate Costs (Par. 225^) is particu- 
larly pertinent. Those who must be both "master and man" will 
find that chapter both practical and possible. 



Index 

Account — Definition of 2I 

Accounts — Arrangement of , Q 

The Household ' - 

The Poultry ^ 

Personal 

RcaI ...................22 

Representative 2 , 

Usefulness of 

Accounts with Persons from Whom We Buy Goods 204 

Rules for Debit and Credit 20 - tn 20g 

At the End of the Year 2I0 

Accounts with Persons to Whom We Sell Produce U)7 

Rules for Debit and Credit U) g to 202 

At the End of the Year 

Illustration of P]atcs 86 and g? 

Advertising- 

b 73 

Annual Statement— (Illustrated)) 

April Cash Account-Example of ' P]a(cs g and Q 

Approximate Costs t/ 

Arrangement of Accounts 

30 

August Cash Account— Example of p ]atcs 24 an( , ,. 

Balancing the Cash „ 

Banking 

p t 95, 21s 

Reasons for 

<>5 

Uses of 

liank Account 

21] 

Rides for Debit and Credit 2U to 2I , 

At the End of the Year 2I 

Illl,stration of Plates sn and 89 

Hank Checks — How to Write 

230, 23 1 

Numbering of Same and Why g g 

When Cancelled g 

Bank Note — Form of 

Bills Payable 

Q7, 101 



I0 HOW TO KEEP FARM ACCOUNTS 

Bills Payable Account 136 

Rules for Debit and Credit 137 to 139 

At the End of the Year 140 

Illustration of Plates 64 and 65 

Bills Receivable 7 2 

Bills Receivable Account 143 

Rules for Debit and Credit 144 to 149 

At the End of the Year 150 

Illustration of Plates 66 and 67 

Bookkeeping — Definition of 13 

Books of Original Entry 17 

Books of Record 3 

Bran 99 

Building and Improvements 74 

Building and Improvement Account I 29 

Rules for Debit and Credit 130 to 134 

At the End of the Year 135 

Business Paper — Filing of 8 

Remarks on 226 to 247 

Capital Stock Account— Its Equivalent on the Farm 117 

Cash Book, The 20, 30 

At the End of the Year 105^ 

Definition of A 2 

How to Balance 51, 66 

Posting of 53 to 55 

Rules for 4 2 

Ruling of 43 

Cash — On hand the first of the month '. 58 

On hand the end of the month 51 

When credited 4- 

When debited 42 

When over S 2 

When short 5-' 

Checks — as receipts 2 3° 

I low to endorse 2 35 

How to write 230, 231 

Numbering of same and why 96 

Stopping payment of 245 

When discrepancies exist 232 

When you receive one not endorsed 226, 227 

Classification of Accounts 30 

Closing the Ledger at the Knd of the Year 104 

Clover Seed I0 ° 

Commercial Paper — Forms of 228 to 254 



HOW TO KEEP FARM ACCOUNTS 



Cost of Production 4 

Corn— Rule to find Contents of Cribs 256 

Rule for Measuring when on Cob 255 

Shrinkage 257 

Credit — Laws of 25 

Day Book, The 9 

Debit— Laws of 25 

December Cash Account — Example of Plates 40 and 41 

Depreciation — Of Buildings 129 

Of Implements 36 

Destroying Notes 14 1 

Discount Account 191 

Discounting Notes that have Endorsers 228 

Discrepancies in Notes, Checks or Drafts 232 

Double Entry Bookkeeping 15 

Drafts — Time or Sight I42 

When Buying 229 

When discrepancies exist 22,2 

When you receive one nol endorsed 226, 227 

Due Bill— Form of 242 

End of the Year 104, 105, 220 

Errors in Trial Balance S7 

Essentials of Farm Accounts 2 

Essential Books of Record 16 

Extra Help Employed on the Farm 50, 69 

Expense Account 161 

Rules for Debit and Credit 162 to 164 

At the End of the Year [65 

Illustration of Plates 7<> and 71 

Farm Accounts — Essentials of 2 

Farmstead, The, Account 117 

Rules for Debit and Credit 118 to uo 

At the End of the Year 117 

Illustration of Plates 62 and 63 

Farm Help Account, The 117 

Rules for Debit and Credit 1 78 to [80 

At the End of the Year '. [8l 

Illustration of Plates 78 and 99 

Farm Ledger, The 26 

Index of 29 

Ruling of 28 

Size of 27 32 

Farmer's Mutual Insurance [96 

February Cash Account — Example of Plates 4S and j\<> 



12 HOW TO KEEP FARM ACCOUNTS 

Feed Account, The 166 

Rules for Debit and Credit 167 to 169 

At the End of the Year 170 

Illustration of Plates 72 and 73 

Fertilizers 80 

Filing of Business Papers 8 

First Entry to Make When Books are Opened 44 

First of the Year 11 

Freight 84 

Lost in Transit 67 

Gestation Table 272 

Grain — Rule for finding contents of bins 258 

Shrinkage of 260 

Hay — Exact measurement of 261 

Rule for finding tons in windrow 262 

Rule to find contents of mow 263 

Rule for finding contents of stacks 264, 266, 267 

Rule for finding tons in load 265 

Rule for finding amount of hay or other product sold by the ton.. .. 268 

Hogs 70 

When taken for personal use 91 

How to — Arrange or Classify Accounts in the Farm Ledger 30 to 32 

Balance the Cash Account 51, 52 

Close the Ledger at the End of Year 220 to 225 

Enter an order received for Farm Products 48, 49 

Enter an order you send for seed 59 

Find amount of Hay in Load 265 

Find amount of Hay in Windrow 262 

Find amount of Hay in Mow 263 

Find amount of Hay in Stacks 264, 266, 267 

Find percentage of Loss or Gain 225 

Find value of Products sold by the ton 268 

Find interest at any rate for any time 271 

Endorse a check 235 

Make claim to R. R. Co. for shipment lost in transit 67 

Make a check 230, 231 

Open or Begin a Farm Ledger 37 to 46 

Open or Begin a Cash Account 42, 47 

Open an Account with Bank 95, 214 

Open and Close the Bills Payable Account 136 to 140 

Open and Close the Bills Receivable Account 143 to 150 

Open and Close the Building and Improvement Account 129 to 135 

Open and Close the Expense Account 161 to 165 

Open and Close the Farmstead or Capital Account 117 to 120 



HOW TO KEEP FARM ACCOUNTS 13 

How To — Continued. 

Open and Close the Farm Help Account 177 to 181 

Open and Close the Feed Account 166 to 170 

Open and Close the Implement Account 171 to 176 

Open and Close the Interest Account 186 to 190 

Open and Close the Labor Account 182 to 185 

Open and Close the Production Account 155 to 160 

Open and Close the Proprietor's Account 106 to 116 

Open and Close the Taxes and Insurance Account 193 to 195 

Open and Close an Account with Property other than the 

Farmstead 121 to 128 

Open and Close Accounts with Persons to whom you sell Pro- 
duce 197 to 203 

Open and Close Accounts with Persons from whom you buy 

goods 204 to 210 

Locate errors in the Trial Balance 57 

Measure Corn in Crib 257 

Measure Grain in Bins 259 

Measure Wood 269 

Post the Cash Book 53 to 55 

Stop Payment of a Check 236 

Take an Inventory 7. 34 to 36 

Take a Trial Balance 56 

Horse Shoeing 68 

Household Accounts 5 

Husking and Shredding 90 

Implements — Depreciation of 36 

Repairs on 68 

When bought 63, 69 

Implement Account 171 

Rules of Debit and Credit 172 to 175 

At the End of the Year 176 

Illustration of Plate 74 and 75 

Index 29 

Insurance 196 

Interest Tables 270, 271 

Interest Account, The 186 

Rules for Debit and Credit 187 to 189 

At the End of the Year 190 

Illustration of Plates 82 and 83 

Inventory — Definition of 34 

Examples of 35, 222 

Importance of 7 

Valuation of 36 

January Cash Account — Example of Plates 44 and 45 



i 4 HOW TO KEEP FARM ACCOUNTS 

Joint Note — Form of 253 

Journal, The 19 

July Cash Account — Example of Plates 20 and 21 

June Cash Account — Example of Plate 16 and 17 

Keeping Separate Accounts with each product 4 

With each field 4 

Labor 62, 69 

Labor Account 182 

Rules for Debit and Credit 183, 184 

At the End of the Year 185 

I llustration of Plates 80 and 81 

Lambs 89 

Land 101 

Laws of Debit and Credit 25 

Ledger, The 18 

Index for 29 

Ruling of 28 

Size of 27, 32 

To close at the End of Year 104 

Liabilities 221, 224 

Statement of 37, 39 

Linseed Meal 78 

Live Stock — Records 31 

On hand at beginning of the year 34 

Bought during the year 157 

Sold during the year 155 

Record of Mating and Dates of Birth 31 

Locating Errors in a Trial Balance 57 

Loss and Gain Account 216 

Rules for Debit and Credit 217, 218 

Illustration of Plates 90 and 91 

Lost Shipments — How to Collect 67 

Lumber 103 

March Cash Account, Example of Plates 52 and 53 

Mating and Date of Birth of Live Stock 31 

May Cash Account, Example of Plates 12 and 13 

Measures and Weights — Tables of 263 

Measurement of Corn 256 to 249 

Of Grain 259, 260 

Of Hay 261 to 267 

Of Wood 269 

Men— Hired by the Year ' 62, 104, 105 

Middlings 60, 166, 168 

Money Taken for Personal Use 6, "6, 83 



HOW TO KEEP FARM ACCOUNTS 15 

Money Orders — Express 49 

Post-Office 49 

Mortgages 97, 101 

Nails 78 

Net Gain or Loss — To Find 224 

Net Worth 40, 223, 224 

Notes— Forms of 233, 247 to 254 

Having Endorsers 228 

How Debited and Credited 154 

Paid, When Secured by Mortgage 141 

Waiving Protest 228 

When Given 136 

When Paid 136, 234 

When Partial Payments Have Been Made 151 

When Renewed 152 

When Discounted 153, 192 

When Discrepancies Exist 232 

When Endorsed Over to You 246 

November Cash Account, Example of Plates 36 and 37 

Oats V 75> 167, 168 

October Cash Account, Example of Plates 32 and 33 

Opening Entries When Books Are Begun 44 to 47 

Orders for Farm Products, How to Enter 48, 49 

Original Entry, The Books of 17 

Partnership 107, 108 

Percentage of Loss or Gain, to Find 225 

Personal Accounts 24 

Posting 53, 54 

Order of 55 

Potatoes 87 

Taken for Personal Use • 88 

Poultry Accounts 6 

Present Worth 116 

Principles and Definitions of Accounts 12 to 25 

Private Accounts 108 

.Production Account 155 

Rules for Debit and Credit 156 to 159 

At the End of the Year 160 

Illustration of Plates 68 and 69 

Products of the Farm — When Sold 155 

When Taken for Personal Use 88 

When Sold on Time 197 

When given to help on account 1 79 

Promissory Notes — Forms of 252 



16 HOW TO KEEP FARM ACCOUNTS 

Proprietor's Account 104, 106, to 108 

Rules for Debit and Credit 109 to 115 

At the end of the Year 1 16 

Illustration of Plates 60 and 61 

Railroads — Claims Against 67 

Real Accounts 22 

Real Estate Accounts 121 

Rules for Debit and Credit 122 to 127 

At the end of the Year 128 

Receipts — Forms of 248, 249 

Receipts — To apply on account .248 

In full of account 249 

For payment on note 250 

Record of Live Stock 31 

Red Ink in the Ledger 10 

Rent 126 

Repairs of Implements 68 

Representative Accounts 23 

Resources 221,224 

Resources — Statement of 37, 38 

Rules of Debit and Credit 47 

Rules Useful When Taking the Farm Inventory 246 to 259 

Ruling of Cash Book 43 

Of Ledger 28 

Sales of Farm Products 48 

Salt 60 

Scales 74 

Seed — Entry of When Buying 59> 81. 85 

September Cash Account — Example of Plates 26 and 27 

Shipments Lost in Transit 67 

Shoeing 68 

Shredding Fodder QO 

Single Entry Bookkeeping • M 

Sight Drafts 142 

Size of Ledger -?■ 3- 

Statement of Resources and Liabilities 37 

Stallion Services 64 

Stationery 61 

Stock Register 3 1 

Sundry Labor 69 

Tables of Weights and Measures 273 

Taxes and Insurance Account l 93 

Rules for Debit and Credit •' 194 

At the End of the Year 1C )5 

Illustration of Plates 84 and 85 



HOW TO KEEP FARM ACCOUNTS 17 

Threshing 77 

Tile 102 

Time Drafts 142 

Timothy Seed 85 

To find what you have made or lost 223 to 225 

Transactions that occur when you are not at home 9 

Transferring an Account to a new page or a new Ledger 140 

Trial Balance 54. 56, 65 

To locate errors in 57 

Usefulness of Accounts on the Farm 1 

Waiving Protest on Notes you discount that have endorsers 228 

"Wear and Tear" of Implements 36 

Weights and Measures ~7i 

What You Must Know Before You Begin or Open Your Books 40 

Wheat '. 79 

Shrinkage of 260 

When Ought the Farmer Open His Ledger n 

Wood — Measurement of 269 

Wool— When Sold 68, 158 

Yearly Statement 223, 224 



Part One 



"1 would not impose on a busy ((tinier the keeping of an 
elaborate set of books, but some simple form of accounts will be 
a great aid in successful farming." 

James Wilson, Secretary of Agriculture. 



FOREWORD 



a a 

1. The farmer who works all day under a blazing sun, naturally looks upon 
the keeping of accounts from a differenl viewpoint than other men in business 
for themselves. For besides the long hours, rush of work and scarcity <>f help 
during the busy days from seedtime till harvest, he has the natural aversion to 
writing and detail common to all wlio do active physical labor. Therefore, it's 
not a matter of surprise when we think of the conditions under which the Amer 
ican farmer must labor, that, although he has over twenty billions of dollars in 

vested in his business, he usually leaves the accounting of it for later considera- 
tion, with the result that a record is seldom, if ever, attempted of his farmstead's 
earnings and expenses. 

Admitting the value of bookkeeping on the farm, the first question that comes 
to the mind of the practical farmer is: "What is the best way to keep my a. 
counts?" 

2. THE ESSENTIALS OF FARM ACCOUNTS.- In farm accounting 
there are two essentials which should always be kepi in mind. These are ac 
curacy and simplicity. That all bookkeeping must be accurate goes without 
Saying, and that farm accounts should be simple and free from detail is apparent 
to any one at all familiar with actual everyday farm conditions. 

'A. THE BOOKS OF RECORD. — The uses of modern commerce demand 
that the books of record suit the business in which they are used. In the great 
mercantile and industrial organizations, it is often economy of time to have many 
books of record, but not so on the farm. Mere, the less detail and fewer books 
of record the better, hence, the method described and illustrated in the following 
pages makes use of but one book. 

It's a common saying that no two men keep their books alike. I'.ut the dif 
ference, if any, comes from the individual, his business ami the details necessary 

to be shown. The matter that im>cs into the Farm Ledger will depend on the 

farmer himself. It will be much or little, as he may decide. However, let him 
beware lest his books begun in the Hood tide of enthusiasm, when work is slack 
and evenings long, be not too full of unimportant detail They are then almost 
sure to be neglected when busy days come later on It is much belter to begin 
a simple account and keep it accurately than to attempt too much. Think of 
your busiest days, not those in which you have the least to do. 



24 HOW TO KEEP FARM ACCOUNTS 

As already stated, the books of record must suit the business. In the larger 
mercantile houses and industrial organizations there are many different styles of 
Ledgers, including bound, loose-leaf and card index, as may best suit the business, 
and all of them have their place in the economy of modern commercial life. 
But for the uses of most men on the farm, the bound book is best for two reasons: 
First — because lowest in price. Second — because it is universal. 

No high priced books of record are necessary or desirable, and the card index 
and loose-leaf systems can't be found as yet in the smaller stationary stores, and 
although boomed by their makers in season and out, they have many dis- 
advantages on the farm. 

And so, for many reasons which cannot be explained in detail here, the 
bound book is preferable on ninety-nine farms out of every hundred. 

An exception may be noted, however, as regards farms devoted to the breed- 
ing of pure bred stock. On these and large Dairy farms where it is desired 
to keep a record of individual performances, the card index or a loose-leaf sys- 
tem may suit the owner best, even if more costly to install. 

4. THE COST OF PRODUCTION.— Notwithstanding the farmstead with 
its full complement of live-stock, implements and buildings can be likened to a 
"plant" of the manufacturer, and although the farm is a factory to all intents and 
purposes, it is que'stionable whether the practice of cost or departmental ac- 
counting is practical on the average farm. On this point there may be a dif- 
ference of opinion, but on the average farm one who would attempt to keep an 
accurate account with either fields, crops or kinds of stock will have his hands 
so full during the busy season, that, nine times out of ten, the accounts would be 
neglected and thought too troublesome to continue. For this reason, most 
farmers should treat their accounts with the farm as a whole — rather than to 
open an account with each field, or their hogs, sheep, cattle, etc. It is true that 
accurate cost accounting is a necessity in the factory. The manufacturer must 
know what it costs to make and put his products on the market, but is it so all im- 
portant to the farmer? In nearly every rotation there are certain crops neces- 
sary to keep up the farm fertility that can't be accurately set down in figures. 
The results from the farmstead as a whole, is eventually of the most importance. 
And the practical farmer, if he cares to know, can take his pencil and come as 
near as is necessary to figuring the cost of growing an acre of corn, or what his 
cattle or sheep net him. Therefore, don't draw the lines so fine in actual prac- 
tice that your resolve to keep accounts will have died "a bornin';" but remember, 
that the cost of production of farm products depends so much on the elements 
over which you have no control, and that the details are so many if you would 
have them accurate, that it is altogether best not to attempt it. It is true, you 
have seen every now and then in the agricultural press, articles regarding the cost 
of producing a pound of pork, beef or mutton, and what it costs to grow the 
different grains and grasses. Now, however useful the exact cost may be, the 
farmer or stockman who would attempt to keep such an account with each crop, 
and the different kinds of live-stock he would raise, will find it all but an im- 



HOW TO KEEP FARM ACCOUNTS 25 

possible task. Manufacturers who deal only with inaminate material can easily 
keep exact cost accounts, but living and growing things possess an individuality 
which varies with the season, with the feeder, and depend on conditions which do 
not admit of hard and fast rules. 

For practical purposes, a "Production" account showing the gross sales 
less the items which go to make up the general expense of the farmstead as 
shown by the Loss and Gain account in the illustration herein (Plates 90 and 91) 
will be all that is needed. Much more satisfaction and real benefit will be found 
in a simple set of accounts accurately kept, than to attempt one burdensome with 
detail, and then at the end of the year find it to be of no value whatever. Far 
better to keep an account with the farmstead as a whole than to begin the de- 
tail of departmental accounting. The one is perfectly reasonable, and requires 
but little time. The other impractical and impossible to all but the very, very 
few on the average farm. (Refer also to paragraph 225 l / 2 , which deals with Ap- 
proximate Costs.) 

5. THE HOUSEHOLD ACCOUNTS.— Xow, about the Household Ac- 
counts. Are there any reasons why they should be included in the farm ledger? 
Have you ever known a -banker, merchant or manufacturer to include them in 
the books of his business? Couldn't he, with as much reason for so doing, in- 
clude them in his books as you in yours? Some argue, that on the farm the 
household expenses are so closely related to the farmstead's earnings that they 
must be included. Very true as far as it goes, but they have no place in the farm 
ledger. Elaborate accounts have been shown in which the "Garden Account" 
was charged for all labor, seed and other expenses and credited with the dif- 
ferent vegetables used from time to time at the market price. But do not do this, 
nor allow any more detail to creep into your books of record than will be of use 
to you. If you think about this a little you will not want to. 

As for "Garden" or household accounts, remember that when you hire a 
man by the year for a certain sum you allow him in addition to the amount agreed 
on — pasture for cow and a garden or truck patch. You figure his labor worth the 
wages you pay him plus the pasture and use of the small plot of ground for 
his garden. And this is the best plan for yourself, too. The live-stock, imple- 
ments and buildings are a part of the farmstead's equipment. These, together 
with the farm, enable you to produce a profit from your labor and management. 
And for this the farm owes you something each year. You may never have 
figured on this; but if you are going to begin an account with your farm, you 
should open a "Personal" account and charge yourself with all money you take 
from its earnings for personal or household use. At the end of the year you 
should charge the "Labor" account for whatever amount you think you've 
earned, making your wages large enough to fully meet all expenses for clothing, 
groceries, church, education, relaxation and all other necessaries to which your 
family is entitled. Whatever you decide that you and your family can get along 
with — charge to your "Personal" account and keep the detail of household ac- 
counts out of the farm ledger. If you do this, the same as any other business 



26 HOW TO KEEP FARM ACCOUNTS 

man would do, your bookkeeping will be much more simple and satisfactory in 
every way. 

6. THE POULTRY ACCOUNT.— On most farms unless Poultry is made 
a specialty, the proceeds is considered the wife's, to do with as she sees fit. Some- 
times she trades the eggs out at the "store" for different little things needed round 
about the house, and sometimes she takes the cash, but, generally, whatever is 
derived from this source is considered hers to do with as she pleases. For that 
reason Poultry is not included in the inventory of the illustration given in the 
following pages. But if the owner of a farm decides to have an account with 
"Poultry" he should include it in his inventory, in which case he would have to 
credit the "Production" account with all proceeds from the poultry — that is treat 
it as he would his hogs, sheep or cattle. 

However, if Poultry is made a specialty, an account may be opened with it 
and then it should be treated as any other account, debiting for amount of Poultry 
on hand when books are opened and for all that is paid out during the year. 

It should also be credited for all sales and for the amount of the inventory 
when books are closed at the end of the year. 

It is sometimes desirable that this be done, and especially so, if Poultry is 
the principle product or one of them. If it is, extra columns may be ruled in the 
Ledger and a strict account kept of eggs laid and all necessary data which may be 
useful for reference. 

We suggest that when it is desired to know what Poultry is paying, that the 
feed be bought and used for the Poultry only. This will simplify the accounting. 

7. THE INVENTORY.— What has been said about it being necessary to 
include the Poultry in the inventory, if it is decided to have an account with it 
represented in the ledger, brings to mind the importance of the inventory. If 
you have read Prof. Henry's "Feeds and Feeding" you know how much import- 
ance he places on the old maxim that "The eye of the master fattens his cattle." 
Now, in accounting, never forget the importance of the inventory. An in- 
ventory is the first thing to take before any books can be opened, and it is the 
first thing to take before they can be closed. It is one of the most important 
steps in accounting, but even as important as it is, so many business men neglect 
it, leaving it to subordinates who do not fully realize how vital it is to the suc- 
cess of the business, that fully 95 per cent, of the failures in business can be traced 
directly to this carelessness or ignorance. By all means take your inventory your- 
self and carefully. Get ready for it so that when the day comes you can take it 
without trouble or guess work. Remember that everything should be included 
in the Inventory that is used in the maintainance of your farmstead or to in- 
crease its products. And further, that the value of each implement, all live-stock, 
feed and products on hand at the time it is taken should be honestly set down. 
Make the values just what you could get in the open market for all except the 
implements, and on these deduct a certain percentage each year for "wear and 
tear" from the prices paid. Some manufacturers deduct ten per cent., but gen- 
erally this is too much for farm machinery that has had good care. It often hap- 



HOW TO KEEP FARM ACCOUNTS 



pens that the old you have will do as good or better work than the newer. You 
see it depends altogether on the "eye of the master," for 

"He who by the Plough would thrive 
Must either hold himself or drive." 

8. THE FILING OF BUSINESS PAPERS.— And when you are taking 
your inventory, some of the prices paid for the different implements, for the 
harness or for some one of the many things about the farm may have been 
forgotten. How are you to know and get at the correct cost in such cases? Let 
"a place for everything and everything in place" be your rule when handling 
business paper and correspondence. If this is practiced you would only have to 
turn to your letter file and find the original cost of any implement or the price 
paid for all feed instantly. A transfer case with index can be bought at any 
stationers, at from 20 to 40 cents. In it can be filed for instant reference, all 
letters, receipts, expense bills (freight receipts) Bills of Lading, cancelled checks, 
candied notes and all other paper worth keeping for future contingencies. Begin 
to file all papers that pertain to the business of your farmstead. Put everything 
in black and white. Don't depend on memory or verbal contracts, "for verbal 
contracts feed the courts" and one of you may die. Keep your ledger right up to 
date, and if the inevitable comes, as it must come some day, your family will not 
be "between the devil and deep blue sea," but can take hold of your temporal 
accounts understandingly and conduct the farm and settle your business affairs 
without litigation or expense. 

9. "WHAT ABOUT TRANSACTIONS THAT OCCUR WHEN I'M NOT 
AT HOME?" — As explained in paragraph 6 the book upon which a transaction 
is first recorded is the one to be produced in evidence in cases of litigation. For 
this reason it is good business practice to enter all transactions in the one book 
you keep as a Ledger. As the transactions are not many any one month, by 
leaving four pages for each month's Cash Account, or forty-eight pages for the 
year, enough space will be left for memoranda and all transactions which 
are necessary to enter during the absence of the owner, or whoever may take 
care of the books. If pages nine and ten are used for the April cash, eleven and 
twelve will be set aside for daily memoranda, which ought to include all events 
worth putting on record. By this method, if you were not at home and John 
Jones got a load of hay, those in charge in your absence would turn to the 
memoranda page for whatever month it happened to be and write, if in April, 
on page eleven: "John Jones, Hay 2640 lbs." On your return, you would 
naturally turn to the books and finding this entry, write it on the Cash Account 
proper for that day and month as it should be, according to whether it was a 
cash or time transaction. 

IO. RED INK IN THE LEDGER.— Books, of course, can be kept as ac- 
curately without the use of red ink rulings and entries to balance accounts as 
they can with them, and many bookkeepers claim its use should be relegated to 



28 HOW TO KEEP FARM ACCOUNTS 

that chapter in the ancient history of accounting when all cash transactions were 
journalized. Hut most bookkeepers continue to use it, and the illustration given 
herein makes use of it. A word or two as to what these red ink entries mean 
will not be out of place. 

First turn to the Cash Account for April (plate 9). Footing up the entries 
in black, we find the debit side amounts to $425.00 more than the credit side, 
that is. we have $425.00 on hand. Being the end of the month and wishing to 
close the account to make it balance we write on the credit side, in red ink, 
"Balance $4->5.oo." (See item eg.) When we write this, we really agree to enter 
as soon as the account is ruled and closed, on the debit or opposite side, the 
amount we have on hand in black ink. Compare item eg on plate 9 with item 
da on plate 12 and you will see just what is meant. You will also note that 
this occurs every time we balance the Cash Account, whether daily, weekly or 
monthly. 

If you will now turn to the Ledger accounts you will see that the red ink 
entries made there to balance, carry forward or close an account at the end of 
the year never affect its balance because you agree when you balance, carry for- 
ward or close an account, that you will bring down or carry forward all red 
ink entries to the opposite side of the Ledger in black ink. Hence, the balance 
of the Ledger is not changed, the red ink simply serving to show that such 
an account has been balanced, carried forward or closed as we have agreed to 
do as indicated by the entry in red. 

If you refer to Plate 60 you will see we agree to credit Fox with his 
"Present Worth" at the time the books are closed. (See entry in black ink of 
$12,703.60, on Plate 61..) 

Therefore, all red ink entries are either brought down or carried forward 
to the opposite of the Ledger in black ink. 

11. WHEN SHALL THE FARMER BEGIN OR OPEN HIS 
LEDGER? — It is customary among- merchants and manufacturers to close their 
books at least once a year, ami it is understood by them that the first of the 
year, as far as the records of the business are concerned, is at the time the 
books are closed. In commercial pursuits, January 1st is usually selected, but on 
the farm, this must be considered, whether it isn't best to select a time when 
the live-stock and other products are at their minimum? 

For instance, among farmers generally in the northern half of the United 
States the first of March or April finds most of them with less stock and pro- 
duce on hand than at any other time of the year, and the active labor of putting 
in the oats, barley and other spring crops barely begun. Any date will do, and 
the farmer must decide for himself what time of the year suits his location, 
rotation and system of farm management best, 



Part Two 



PRINCIPLES AND DEFINITIONS 



a a * 



12. PRINCIPLES AND DEFINITIONS. 

At the beginning of every business, except farming, some system of ac- 
counting from which its owner can form an estimate of its development at any 
time, is thought absolutely necessary. In farming it is the last. And, al- 
though the keeping of accounts must always be incidental to the business itself, 
because it results from it, yet it is such an important essential in securing the 
greatest profit from the farm that every farmer should keep an account with 
his farmstead, if ambitious to obtain the most profitable returns from his 
management. For after all, profit is the incentive to all business activity. This 
is just as true on the farm as it is in any branch of commerce or manufacturing. 
It's the profit we think of that spurs us on to grow better grain, or fruit, or to 
raise finer stock than our neighbors. And then when we've sold the stock we've 
raised and the grain or fruit we've grown and have pocketed the proceeds, we've 
completed a business exchange or transaction that ought to be put on record, 
the recording of which is nothing more or less than bookkeeping; hence: 

13. BOOKKEEPING is the art of recording business transactions dis- 
tinctly and systematically so as to show the money received, disposed of and 
on hand, the credits given, and the assets, liabilities, and general status of the 
business, person or firm. There are two methods of keeping books, known as 
Single and Double Entry. 

14. IN SINGLE ENTRY there is but one debit or one credit to a transac- 
tion, and only personal accounts carried to the Ledger. It is therefore imperfect 
and incomplete and never used in modern business, because accounting that 
isn't accurate is worse than none at all. Single Entry affords hardly half-a-loaf 
at best, but 

15. DOUBLE ENTRY BOOKKEEPING furnishes a complete business 
record in which every transaction is made to appear on the Ledger as both 
debtor and creditor by observance of the governing principles, that, in every in- 
stance the thing obtained is debtor to the thing given, and the thing given is 
creditor of the thing obtained, by means of which a correct Ledger balance is 
always at command. 



32 HOW TO KEEP FARM ACCOUNTS 

In simple English it means that, for every debit there must be a correspond- 
ing credit, and vice-versa. That's the whole thing in a nutshell, and it is by 
using this principle for a foundation that the entire structure of accounts is 
built. 

16. ESSENTIAL BOOKS OF RECORD.— In double-entry, the Journal, 
Cash Book and Ledger are the principal books, although other books known 
as Auxiliary books are added for convenience. Nowadays the Cash Book and 
Ledger are the principal books, and it is perhaps advisable to have a separate 
book for each on farms extensive enough to require the services of a book- 
keeper, but for all farmers who must keep their own books, the system shown in 
the pages which follow is the most simple and convenient. 

17. BOOKS OF ORIGINAL ENTRY are those upon which the transac- 
tion is first recorded. In case of litigation the book of original entry, whatever 
that book may be, is the one required to be produced in evidence. 

18. THE LEDGER is the book of accounts, and contains a final summing 
up of all the accounts. 

19. THE JOURNAL OR DAY BOOK.— Formerly this book was used 
to enter all transactions as they occurred from day to day. Nowadays the best 
bookkeeping is that which tells every detail with the least minutia, and the ten- 
dency of the times is to reduce the number of books and entries as much as 
possible, hence, the Journal or Day Book is seldom used, the Cash Book answer- 
ing every purpose. 

SO. THE CASH BOOK is the book used to detail the cash transactions, 
and should always be a book of original entry. On the farm it should answer 
the purpose, and take the place of the Day Book or Journal. Then by com- 
bining it with the Ledger, as explained later on, the farmer will have to keep but 
one book of record, which will appeal to all practical men. One volume a year — 
the original book of entry and Ledger, one and the same. In cases of dispute 
or litigation, if called upon to act as Guardian or Administrator, if ever, under 
any circumstances, called upon to produce the book in court, every transaction 
is there convenient and complete. 

21. ACCOUNT. — An account is a recorded statement of debits and credits, 
of receipts and expenditures, or of business transactions, and are of three kinds: 
Real, Representative and personal. 

22. REAL ACCOUNTS are those which show either a resource or a lia- 
bility in continuous record, such as cash, notes and personal accounts. 

23. REPRESENTATIVE ACCOUNTS are those which show the earning 
activities of a business, Mich as interest, discount, expense and property. 

24. PERSONAL ACCOUNTS are those opened with persons who from 
time to time become indebted to us or we to them. 

25. LAWS OF DEBIT AND CREDIT.— As explained in defining double 
entry bookkeeping, every transaction is made to appear in the Ledger as both 



HOW TO KEEP FARM ACCOUNTS 33 

Debtor and Creditor, hence every account is affected in two ways— by debits and 
credits. From this you will understand every account lias two sides, the Debit 
and the Credit. The principles which govern them are unchangeable, and are 
as follows: 

DEBIT SIDE ACCOUNT CREDIT SIDE 



On this side we enter what comes || On this side we enter what goes out 
into the business or what costs value. || of the business or what produces value. 



Therefore, you should memorize the following: 



Always debit what we receive and II Always credit what we give and who 
who or what costs us value. || or what produces value. 

Always remember that every transaction that can possibly occur is gov 
crned in a bookkeeping sense by one or the other of the two principles given 
above. 



Part Three 



"Let us forge out a system that will 
meet our requirements as producers 
and suit our conditions." — Wilson. 



THE FARM LEDGER 



26. A modern system of accounting is one that automatically furnishes sta- 
tistics of a business in such form as to be readily referred to by the owner, and 
furnish him a safe guide for its management along prosperous lines. 

On a farm the books should be so kept that all questions regarding either 
the finances or the farmstead or its owner can be answered without looking up 
data in ancient files or other books of record than the Ledger. 

As for the Ledger, there are nearly as many kinds nowadays as there are 
businesses. This results from a desire to harmonize the books with the business, 
and when attained, insures accuracy and a great saving of labor. 

The farmer should adapt his bookkeeping to suit his conditions, and the 
best system for him is one that differs from the usual method by dispensing with 
separate Day Book and Cash Book, using one book only — the Ledger — which, if 
rightly kept, will answer every purpose. 

27. SIZE OF LEDGER.— All that is required is one large enough to 
admit the opening of all the accounts necessary to properly care for the rotation 
followed on the farmstead. It is best to use one book each year. It is much 
handier when wanting to refer to the records of any former year or when com- 
paring one year with another. 

28. RULING. — It should have the regular single entry ruling, of which the 
following is an example: 



EXPLANATION COLUMN 



PAGE 

OF 
CASH 
BOOK 

OR 
LEDGER 



Blank books ruled like the above can be bought at most stores in every 
village, the cost running from seventy-five cents up, according to size, quality of 
paper and binding. This ruling answers all purposes on most farms, but when 
a record is kept of the individual performances of cows; of eggs laid. or any other 
data you think advisable to keep, additional columns may be ruled to suit. On 
a dairy farm each cow can have a page set aside for her record. A record may 
also be kept of pure bred stock in this manner. It is best to rule a form and 
decide definitely that it suits your purpose before ruling your ledger. With a 
little thought a ledger of this kind can be made to answer all purposes as a book 
of record and accounts. It can be made to tell you just what you want to know 
about your farmstead, and will be found infinitely better and decidedly cheaper 
than an elaborately ruled book that doesn't suit your rotation or individual needs. 

29. INDEX. — These books are made with and without indexes; but when 



4 o HOW TO KEEP FARM ACCOUNTS 

used as a book of record on the farm they should have the index. Then it can't 
be lost or mislaid and is always at hand, ready for use. 

30. THE ARRANGEMENT OF ACCOUNTS.— It is always advisable in 
classifying the accounts for the average farm, that the first six pages be set aside 
for the annual inventory. Then an allowance of forty-eight pages for memor- 
anda and the Cash accounts for the twelve months. This allowance of forty- 
eight pages insures enough space to write any memoranda from day to day dur- 
ing the month, which may be worth noting in permanent form, that is, if pages 
nine and ten are used for the June Cash, pages eleven and twelve would be left 
blank for memoranda and the July Cash entered on pages thirteen and fourteen, 
and so on. Then a few pages should be set apart to record the mating and date 
of birth of all live-stock, and this should be indexed the same as any account 
in the Ledger so that it may be quickly found. While the accounts of a farm and 
its records are wholly distinct, yet each are essential to the most profitable 
farming. 

The accounts show the business end of your operations-*-their results in 
dollars and cents. Records will help you decide which is the most economical 
method of handling your farm. 

Although many farm without using either, yet the greatest success is not 
attainable unless both are kept. 

But records are of no avail unless they are used as a basis on which plans are 
made and carried out. Records will vary on each farm, and it isn't possible to 
present in a book intended for general use, forms for all data that might or could 
be used in different localities. For the general farm, two or more pages set 
aside for each month, as suggested above, will answer every need. For dairymen, 
a page For each cow in the herd, ruled to show weight of milk, test of butter- 
fat, etc., etc., will be sufficient. For the breeder of pure-bred livestock there are 
ready-ruled registers mentioned elsewhere (Paragraph 31) that will be found 
convenient and low-priced. 

But what we wish to particularly impress is this fact — the records may be 
many or few. as best suits the needs of the owner of the farm, and he can best 
determine their extent when he decides the end for which he is striving. 

Unless one thinks and plans and uses them as a basis on which to work 
they will not help. Merely keeping a record part of year will be of no avail. 
Have a well thought out plan and then keep such records as will give you 
statistics vital to its success. 

As a matter of convenience, adjustable index tags may be had at from 8 
to 1 _> cents each, Placed on a page, much time is saved when posting. It is best 
to use a larger tag for pages containing Memoranda and Cash account. If 
pages and 10 are used for June Cash, place tag marked Cash on page 10, etc. 
Then on the first oi the month following, when your books are posted and 
balanced, move "Cash" and "Memoranda" tags forward to the pages set aside for 
these items for the month. At the end of the year, when you begin your new- 
ledger, the tags can he changed quickly and used from year to year. They will 



HOW TO KEEP FARM ACCOUNTS 41 



last a lifetime. There arc several different styles and makes on the market. 
While they arc not indispensable, t hey are worth having because they save time 
and last indefinitely. 

31. These few pages should be all that is necessary on most farms, unless 
the breeding and sale of pure-bred stock is made a specialty, when it is belter 
to use a record made on purpose for breeders. 

There are three published that are very convenient and practical. The 
"Breeders' Gazette," The "American Sheep Breeder," and The "American 
Swineherd," all of Chicago, each publish registers for this purpose that will answer 
every requirement. 

The balance of the pages in the Ledger should be divided to suit the ac- 
counts one has or may wish to keep, except, that not less than six pages should 
be left at the end of the book for a recapitulation or animal statement of the 
farmstead's earnings and expenses for the year. 

32. Using the above for a basis the pages necessary would, on most farms, 
be about 100, but the size of the Ledger used must of course be governed by the 
size of the farm and the accounts one would wish to open. 



Part Four 



" Illustration is the basis of successful 
teaching." — Horace Mann. 



THE ILLUSTRATION 



33. To better illustrate how the books are first opened or begun, let us 
imagine some person, say one John Fox, wishes to begin a simple set of ac- 
counts with his farmstead. Having decided on this, the first thing he must do is 
to take an inventory and an 

34. INVENTORY on the farm should be an itemized list of everything 
used to increase its profits or maintain it. It must include all Live-stock, Feed, 
Implements, and all products on hand, such as Wheat, Corn, Barley, Rye, Hay, 
Potatoes, etc., etc., with the quantity and number of each figured at the market 
price the day it is taken. 

This Fox takes, and as he has no time for "fuss and feathers," and doesn't wish 
to open a separate account for each product, he includes under the head of "Pro- 
duction" all his live-stock and the produce grown by him. (Refer to 155.) 

Under Feed, he enters only that which he has bought, such as Bran, Mid- 
dlings, Oats, etc. Had he grown the oats he would have to enter it under "Pro- 
duction," but whatever he buys to feed must be inventoried as "Feed," and at 
the prices paid for it. 

The inventory having been taken we give it in full as follows: 

35. Inventory of Clovermead Farm, March 31, 1901. 

FEED 



PRODUCTION 

Bay Team Jack and Jim $ 160.00 

Bay Mare Queen 75-00 

Black Mare Bess 60.00 

Chestnut Mare June 175.00 

Two Cows at $35.00 70.00 

20 Stock Hogs at $5.00 100.00 

15 Poland China Sows at $12. 180.00 

1 Berkshire Boar 35-00 

100 Shropshire Ewes at $4.00. 400.00 

1 Shropshire Ram 50.00 

I Shropshire Ram 30.00 

I Shropshire Ram 20.00 

913 bushels Corn at 35c 319-55 

9 bushels Potatoes at 30c... 2.70 

11H tons Clover Hay at $6.00 69.00 

87 bushels Seed Corn at 60c. 52.20 



75 lbs. Linseed Meal at $24.00.$ .90 

% ton Bran at $15.00 1.87 

3/4 ton Middlings at $19.00... 14.25 

27 bushels Oats at 32c 8.84 



$ 25.86 



IMPLEMENTS 

One Wagon $ 60.00 

One Farmers' Handy Wagon. 39.00 

One Surrey 120.00 

One Buggy 80.00 

One Spring Tooth Harrow... 14.00 



Amount up $ 313.00 



$1398.45 



48 HOW TO KEEP FARM ACCOUNTS 



Brought up $ 31300 Less 25% discount for "wear 

One Adjustable Harrow 12.00 and tear" of five years' use..$ 183.00 

One Roller 19.00 



Two Plows at $15.00 30.00 $ 549.00 

One Cultivator, "Planet Jr.". . 40.00 One Binder $ 100.00 

One Weeder T2.00 One Corn Harvester 100.00 

One Corn Planter 27.00 

One Grain Drill 75-00 $ 200.00 

One Mower 40.00 Less 5% for one year's depre- 

One Cahoon Seeder 3.00 ciation 10.00 

One Tedder 22.00 

One Corn Sheller 5.00 $ 190.00 

One Hay Rake 20.00 

One Hay & Stock Rack . . 12.00 RECAPITULATION 

Two Sets Harness at $30.00.. 72.00 

One Set Light Harness 20.00 Production $1398.45 

Also Axes, Forks, Log Chains, Feed 25.86 

Three Horse Eveners, Implements 739-00 

Wheelbarrow, and other 



miscellaneous tools about Total $2163.31 

the place 10.00 



$ 732.00 



36. INVENTORY VALUATION.— As we have already stated, Fox 
values his live-stock at what it would bring, if sold the day he takes his in- 
ventory, and this is also true of the produce he has grown; but the Feed he must 
figure at what it cost him. 

From his implements he deducts 25 per cent, for "wear and tear" of five 
years' usage. As the Binder and Corn Harvester were bought in 1900 he only 
deducts 5 per cent, from them — both practically being as good as new. Some 
manufacturers deduct 10 per cent, annually for the depreciation of their ma- 
chinery, but when good care is taken of farm implements there is scarcely need 
for such a deduction. The owner must of course decide for himself what the de- 
preciation amounts to. 

37. STATEMENT OF RESOURCES AND LIABILITIES.— Fox now has 

his inventory taken. He knows what he has on his farm and that if sold today it 
would amount to $2,163.31. However, before he can begin his books he must 
know not only this; but the exact amount of everything else he owns; what he 
owes and also what is owing him. 

The easiest way to do this, is to make a statement of his Resources (what he 
has) and Liabilities (what he owes). To get at this, his farm, known as "Clover- 
mead," consisting of 120 acres, cost him $80.00 an acre. He still owes on it 
$2,000.00, which is in four notes of $500.00 each, payable annually with interest at 
6 per cent. These notes are secured by Mortgage, and are held by a local bank — 
the First National. 

He has also $413.00 cash on hand and a note of $70.00 in his favor, which 
is due July 15, 1901. 

38. Itemizing the above, he places under "Resources" (1) the cash value 
of his farm. 



HOW TO KEEP FARM ACCOUNTS 



49 



(2) Production (see inventory) which represents his live-stock and the pro- 
ducts of his farm on hand at this time. 

(3) Implements (see inventory). 

(4) "Feed" (see inventory), and by "Feed" he means what he has had 
to buy — not that which he has grown. 

(5) Bills Receivable (notes owing him) and (6) the Cash he has on hand. 
These items are all "Resources," because, if necessary, he could sell them for 

the amount set aside each and thus realize that much cash for them — hence, a 
resource. 

39. Under "Liabilities," he places Bills Payable (notes he owes). 
To better understand this, let us set down these items and amounts under 
their respective heads, so that it will be perfectly clear. 



RESOURCES 



LIABILITIES 



(1) Clovermead Farm 


$ 9600 


00 


Bills Payable (Notes he 
owes) 


$ 2000 


00 


(2) Production (Inventory) 


1398 


45 


Net Worth 


10246 


3i 


(3) Implements (Inventory) 


739 


00 








(4) Feed (Inventory) 


25 


86 








(5) Bill Receivable (Notes 
owing him) 


70 


00 








(6) Cash (Money on hand) 


413 


00 










$12246 


3i 




$12246 


3i 



40. Now, in looking at the statement above you will see one item under 
"Liabilities" about which nothing has yet been said. It is Net Worth, and is 
simply this: Fox's total Resources amount to $12,246.31. Taking from it the 

total amount of his debts ($2,000.00) there remains the difference of $10,246.31, or 
his Net Worth. 

The foregoing then is what Fox must know before he can open his Ledger. 
It is what you must also know before you can open an account with your farm- 
stead intelligently. 

41. Fox must next make the opening entries in his book of record, and as 
he is a practical farmer, he wants his accounts to be as simple as can be and yet 
be accurate. With this in view, he decides to have as few accounts in his Ledger 
as possible — to use but one book of record — setting aside the first six pages for 
the inventory, the next forty-eight pages for the Cash accounts and Memoranda 
for the year, and the balance of the book for his accounts in the Ledger proper. 

But before any accounts can be opened in the Ledger, the proper entries 
must appear on the Cash Book and the 

42. CASH BOOK in its original form was simply the cash account. It 
was debited for the cash received and credited for all cash paid out— the dif- 



50 



HOW TO KEEP FARM ACCOUNTS 



ference between the debit and credit sides showing exact amount of cash on hand. 
But on the farm the Cash Book must answer for a Day Book or Journal as well, 
and all transactions appear in it. 

As explained before, in double-entry bookkeeping all accounts have two 
sides — a debit and a credit. The left-hand side is always the debit side, and the 
right hand side is always the credit side. 

Remember, then, that the following rules are absolute for the Cash Book: 



LEFT-HAND OR DEBIT SIDE. 

On this side enter all cash you re- 
ceive. 



RIGHT-HAND OR CREDIT SIDE. 

On this side enter all cash you pay 
out. 



43. Now the sides of the blank book that you are going to use as a Farm 
Ledger, are ruled exactly alike, and you will see by referring to the example 
below that the first column is for the date. The second for the page of the 
Ledger to which the entry must be posted. The third space is for explana- 
tion, in which you should write a complete history of the transaction at the 
time it takes place. This should always be written out fully so that if at any 
time later a question arise as to the validity of an account, the details given 
in this column will remove all doubt as to what it was, when it took place, 
etc. The Dollars and Cents column at the extreme right of each page are those 
in which you set down the amount of the transaction. The correct ruling is 
shown below, which note: 



THIS 


THIS 


THIS THE EXPLANATION COLUMN 




DOLLARS 


CENTS 


FOR 


SPACE 










THE 


FOR 








. 


DATE 


LEDGER 
PAGE 











Fox is now ready to make his first entry and the 

44. FIRST ENTRY is to give the owner (Fox) credit for his investment. 
This is always the first entry when the books are opened. We find his invest- 
ment as follows: The statement of his Resources and Liabilities shows his net 
worth to be $10,246.31, of which $413.00 is in cash (money on hand). By de- 
ducting his cash on hand from his Net Worth we have $9,833.31, which represents 
the net cash value of his Farm, Production, Feed, Implements and Bills Receiv- 
able. Therefore, we credit J. Fox (or the owner) by entering on the debit side 
of the Cash Book $9,833.31, the net cash value of his investment, and the $413.00 
cash on hand. (Refer to Plate 8, item da.) Also turn to paragraph 112. 

45. THE SECOND ENTRY in this illustration is to credit Bills Payable 
for $2,000.00, the amount of notes Fox is owing to the First National Bank. 
(Refer to Plate 8, item db.) Also refer to paragraph 138. 

No doubt you are now wondering why we credit Fox and Bills Payable, 
when we enter these items on the debit side of the Cash Book. 

The reason is this: The Cash Book is the cash account. We charge (debit) 
it for all cash we receive and credit it for all we pay out. When we open (begin) 



HOW TO KEEP FARM ACCOUNTS 



5* 



the books, we must of course credit Fox (the owner) for the amount of money 
he has invested. He now has $9,833.31 in land, live-stock, implements, and 
$413.00 in cash, all of which he is using in his business of farming. He must 
open an account in the Ledger that will represent his interest in his business. 
Hence, he must be credited for the amount invested and the cash he is using. 

46. WE NEXT DEBIT the following accounts with the amount of each 
as shown by the inventory. Clovermead Farm (Plate 9, item ca. and refer to 118), 
Production (Plate 9, item cb. and refer to 156), Implements (Plate 9, item cc. and 
refer to 172), Feed (Plate 9, item cd. and refer to 167), Bills Receivable (Plate 
9, item ce. and refer to 144). These items are those that Fox has his money 
invested in. And, as we have previously learned that there must be a debit for 
every credit, we debit each for the amount invested, because we have already 
given Fox credit for them. If they have been entered correctly the Cash Book 
should now balance as follows: 



DEBIT SIDE. 



CREDIT SIDE. 



J. Fox — Investment 


$ 9833 


3i 


Clovermead Farm 


]$ 9600 00 


J. Fox — Cash 


413 


00 


Production (Inventory) 


1398 45 


Bills Payable 


2000 


00 


Implements (Inventory) 
Feed (Inventory) 
Bills Receivable 
Balance 


739 00 
25 |86 

1 70 | 00 
413 00 

1 




$12246 


3i 


|$I2246 | 31 



47. Now that Fox has his books begun, somebody or something must be 
debited for everything brought on the farm, and somebody or something credited 
for all that is sold or taken from the farm. 

By doing this he will know at any time the exact amount of cash he has 
on hand and the true condition of every account he has in the Ledger. 

NOTE. — For ready reference each entry on the Debit side of all accounts 
in both Cash Book and Ledger is indicated by the letter "d" and follow each other 
in alphabetical order, thus: The entry giving Fox credit for his investment is 
Plate 8, item da., and that of Bills Payable is Plate 8, item db. The entries on the 
Credit Side are indicated by using the letter "C" to designate the credit side as 
Clovermead Farm: Plate 9, item ca. Production, Plate 9, item cb., etc., etc. 



Part Five 

THE CASH BOOK 



5-1 




HOW TO KEEP FARM U'COUNTS 










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TRANSACTIONS FOR APRIL. 1901 

Having opened the Cash Book by entering the items shown in his statement 
of Resources and I iabilities in the preceding chapter (refer to items da, db, ca, 
cb, cc, i"il and ce), the transactions common to the rotation practiced by Fox 

follows 



APRIL 8 

He received a money-order of $15.00 from Wm. George, of Troy. Ohio, for 15 
bushels of Seed Corn. Freight C. H. & D. R. R. 

48, li isn'1 practical to open accounts with each individual who may buy 
seed oi othei products from the farm, so Fox credits all sales to Production, and 
will open an account in the Ledger under that head. Refer to Plate 8, item dc, 
and note that full particulars of the transaction are given rhis entry should be 
made immediately after the order is received. Then when he tills and ships it, 

he chocks it, thus: .\ 10. as -how 11 on the plate. Note that the date the oialcr is 

received is in first column, and the full explanation in third column, with the 

amount in the dollars and cents column The figures 69 in second column is the 
1 edgei page, to which the entry is posted, and in this hook, will mean the 

numbei oi the Plate, to whu-h refei in actual bookkeeping this second column 
ol the Cash Hook 1- used for the 1 edger pa.ee 



HOW TO KEEP FARM ACCOUNTS 



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APRIL 9 
J. Green, of Huntington, Ind., wants 12 bushels of Seed Corn shipped by Wabash 
freight and encloses a draft for $12.00 to pay for it. 

49. This transaction — item del — is the same as item dc which immediately 
precedes it. Fox must debit Cash for all money received whether it is in cur- 
rency, postofnee or express money orders, drafts or checks. Always mention in 
what form it is recciccd when the entry is made. 

APRIL 25 
He pays Ed Wise $15.00 for 12 days' labor at $1.25. 

ISO. To open an account witli each person one would have to have as extra 
help on the farm involves too much detail, so Fox charges "Labor" tor the 
amount of this transaction, because he wants to know what he pays for help 
during the year, and, therefore, must open an account for "Labor" in the Ledger 
to which all money paid for help should he charged. Refer to Plate <), item 1 I, 
also to paragraph 183. 

NOTE. — A Star * when found before an entry on either Cash Book or Ledger 
(see plate above item * eg) indicates that such entry should be made in red ink. 
For reason why refer to paragraph 10. 



56 HOW TO KEEP FARM ACCOUNTS 

APRIL 30 
He balances his cash account for April and finds $425.00 on hand. 

51. It is now the end of the month and he balances his cash. Balancing 
the cash is simply footing the two sides of the account, when the difference be- 
tween them should be exactly what you have on hand. 

The difference for April, Fox finds is $425.00, which is the amount he has 
on hand. He now closes the account for April by writing in red ink: — the date, 
the word Balance, and the amount $425.00 on the credit side — see item eg. He 
then rules the closing lines in red ink and writes between them in black ink the 
totals $12,273.31. (See Plates 8 and 9, item df and ch.) 

52. WHEN CASH IS OVER OR SHORT.— Every one makes mistakes, 
and should one occur, such as an error in making change or in paying an ac- 
count and omitting to charge it, and you cannot find it after exhausting every 
effort, the Cash Book can be made to balance as follows: If your cash is over — 
having more than you should as shown by the Cash Book, credit this difference 
to the Production account by writing on the debit side of the Cash Book "Pro- 
duction — Cash Over," which makes it balance. If short — if you have less cash 
than you should have according to the Cash Book, charge it to yourself, writing 
on the credit side of the Cash Book, "J. Fox — Cash short" for the amount of 
difference. In case you locate the error later, debit or credit the difference to 
the proper account and debit or credit yourself or Production as it may have 
been entered at the time you could not locate the error. 

53. POSTING THE CASH BOOK.— Every entry appearing in the Cash 
Book must be posted or transferred to some account in the Ledger. The second 
column is used to enter the page of the Ledger to which the entry is transferred. 
On Plate 8, item da, you will note the Ledger page is 61. Turn to Plate 61, 
item da, and study the entry. Observe that in posting, items entered on the 
debit side of the Cash Book are entered on the credit side of the Ledger. 

The page of the Cash Book from which the entry is posted, is put in the 
fourth column of the Ledger. Refer to item db which is posted to Plate 65, 
items dc and dd are posted to Plate 69. 

Follow these entries from the time the transaction occurs until they are 
completed, i e, posted to their proper accounts in the Ledger. 

The entries on the credit side of the Cash Book are always posted to the 
debit side of the Ledger. l ; ox has opened accounts with Clovermead Farm, 
Production, Implements, Feed, Bills Receivable and Labor. Refer to each item 
and compare the entry on Cash Book with Ledger entry. You will note the 
entries are complete in the Cash Book. They need not be so full in the Ledger. 
The examples given show all that is necessary. 

54. The Cash Book must be posted at the end of the month, if it has not 
been before, and a trial balance taken. A trial balance ought to be taken at the 
end of every month. You take it to see that the books are in balance — that the 
entries in the Cash Book have been posted correctly. 



HOW TO KEEP FARM ACCOUNTS 



57 



55. NOTE — In posting observe the following order: (i) the amount, (2) 
the date, (3) the page of the Cash Book from which the item is transferred. 

Before you begin to post your Cash Book write in the second column, the 
pages of the Ledger to which the entries are to be posted. Then check each item 
as soon as you have posted it. It's a good plan to finish posting the debit side 
before you begin on the credit side — you're not so liable to post the entries to 
the wrong side of the account. 

56. TRIAL BALANCE.— Now comes the trial balance. Fox has gone 
through the month and still he doesn't know whether his books "balance" or 
not. A trial balance is taken once a month to see if all entries have been made 
correctly, that is if the debit side of the Ledger equals the credit. No set of 
books or system of accounts is worth anything to any business unless there is 
some check on them that will prove their correctness. That is why a trial bal- 
ance is necessary, and as accuracy is the first essential in accounts, Fox takes a 
trial balance, and this is what he finds: 



Dr. 



TRIAL BALANCE, APRIL, 1901 



Cr. 





CB 


Cash 


$ 425 


00 


Plate 


61 


J. Fox 


$10246 1 31 


Plate 


62 
66 
68 

72 
74 
80 


Clovermead 

Bills Rec'vable 

Production 

Feed 

Implements 

Labor 


9600 

70 

1 37 1 

25 

739 

IS 


00 
00 

45 
86 
00 
00 




65 


Bills Payable 


2000 


00 








$12246 


3i 






|$ 1 2246 


3i 



His Ledger is in balance. That is the footings of the debit and credit sides 
equal each other. 

You will note he first enters on the debit side of the trial balance the amount 
of Cash on hand at the close of the last day of the month. Then taking the 
Ledger he goes through it, entering on the debit side of the trial balance all 
amounts found on the debit side of the Ledger, and on the credit side of the trial 
balance all amounts found on the credit side of the Ledger. 

This is always the case unless an account has entries on both the debit and 
credit side, and then, you find the difference between the two sides. For instance, 
this montli the debit side of the Production account (Plate 68) is $1,398.45 and 
the total of the credit side at this time is $27.00 (Plate 69). The difference in 
the two sides is $1,371.45, which he sets down in the explanation column on the 
debit side of the Ledger in pencil. This, then, is the amount taken in the trial 
balance. 



58 HOW TO KEEP FARM ACCOUNTS 

Remember, when an account has entries on both the debit and credit sides, 
to take the difference between the sums total, and the amount the greater exceeds 
the smaller is the amount carried to the trial balance. 

57. TO LOCATE ERRORS IN A TRIAL BALANCE.— If the debit and 
credit sides of a trial balance do not exactly agree the books are not in balance 
and the difference, no matter how small, must be found. If they don't agree pro- 
ceed as follows: 

First — The footing of the balance should be verified. 

Second — From the first account in the Ledger until the last, the addition 
and subtraction of each account should be carefully gone over. 

Third — Examine each entry and see whether or not a debit has been made 
for every credit, and for every credit a debit for a like amount. 

Fourth — If any accounts have been balanced and carried forward to a new 
page, see if the amounts carried forward are correct. 

Finally, if the difference still remains, nothing can be done except to go over 
the entire work for the month and continue to do so until the error is found, 
for be it known, the trial balance is simply a copy of the accounts in the Ledger, 
and if the entries have been made properly the footing of the debit and credit 
sides will be exactly alike. 



Transactions for May, 1901 



6o 




HOW TO KEEP FARM ACCOUNTS 








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TRANSACTIONS FOR MAY, 1901 

MAY 1 
Cash on hand $425.00. 

58. The amount of cash on hand at the beginning of each month is en- 
tered in black ink as shown in Plate 12, item da. 

MAY 2 
He sends J. M. Whiton, Wakeman, O., New York draft for $16.00 for 8 bu. 
White Mammonth potatoes for seed. The bank charges him 10 cents for draft. 

59. Refer to Plate 13, item ca for the proper entry to make for this 
transaction. As to the reason for charging this to Expense, refer to the matter 
relating to Expense which follows plate 70. Note that he includes the cost of 
the draft in the entry. 

MAY 3 

He buys 2 ton Middlings at $22.00 and a barrel of salt $1.50. 

60. See Plate 13, item cb. Fox wants to know how much Feed he buys 
during the year, so he opens an account with it. This is also the reason he in- 
ventoried the Feed on hand which he had bought previous to April 1st. Read 
explanatory matter after Plate 72, regarding this account. 

MAY 5 
He has one thousand each of Envelopes ($2.50) and Letter Heads ($3.75) printed. 



HOW TO KEEP FARM ACCOUNTS 



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61. On every farm there are certain articles which have to be bought to be 
used in the maintenance and general business of the farmstead. All these in- 
cidental outlays should be charged to Expense. It is neither desirable or neces- 
sary to open more accounts in the Ledger than will show the results of the 
management. Too many accounts require needless writing and detail. This 
item of stationary is Expense. Refer to Plate 13, item cc, and read paragraph 162. 

MAY 7 
He has had so much trouble to get competent help on the farm, that he makes 
contract with Ed Wise, who has been working for him off and on for some time, 
to work by the year at $300.00. Wise to board all the extra help employed on 
the farm, and in addition to the wages agreed on, to have truck patch, pasture for 
cow, and house rent free of charge. Contract dated May 1st. 

62. No entry for above — simply a memoranda. He files the contract — 
refer to (8). All money paid to Wise will be charged to him in the future and 
not to Labor. Read matter following Plate 78. 

MAY 10 
He buys a Chicago Sheep Shearing Machine — $15.00. 

63. He has already opened an account with Implements. All farm ma- 
chinery bought must, of course, be charged to that account. (See Plate 13, 
item cd,) Now read paragraph 173. 



62 



HOW TO KEEP FARM ACCOUNTS 



MAY 25 
He pays Eli Jones $40.00 for Stallion Services. 

64. This is charged to Expense for the same reason that item ca was. For 
entry see item ce, Plate 13, and refer to paragraph 163. 

MAY 30 
He balances his cash for May — $300.15 on hand. 

The difference between the sums total of the two sides of his Cash account 
for May is $300.15. That is what he has on hand, so he enters it in red ink 
(Plate 13, item cf) rules the closing lines and enters the footings of the two 
sides in black ink between them, just as he did when closing the April cash. 

The posting done he should again take a Trial Balance to see whether or 
not his books are in balance. This he does, and it follows: 



D 


r. 


TRIAL BALANCE, MAY, 1 


901. 


Cr. 






CB 


Cash 


$ 300 


15 


Plate 


61 


J. Fox 


$10246 


31 


Plate 


62 
66 
68 
70 

12 

74 
80 


Clovermead 

Bills Rec'vable 

Production 

Expense 

Feed 

Implements 

Labor 


9600 
70 

I37i 
62 

73 

754 

15 


00 
00 
45 
35 
36 
00 
00 




65 


Bills Payable 


2000 


00 






|$I2246 


3i 






|$I2246 


3i 



65. Observe that the Trial Balance is simply the footings of the various 
accounts in the Ledger except where there have been entries on both the debit 
and credit sides on an account, and then, the difference between the two sides 
only is entered in the Trial Balance. Refer to the Production account, Plate 68. 
Entries have been made on both sides of this account and the debit side is the 
greater the difference, $1,371.45, is what is entered on the debit side of the Trial 
Balance. 



Transactions for June, 1901 



64 



HOW TO KEEP FARM ACCOUNTS 



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TRANSACTIONS FOR JUNE, 1901 
JUNE 1 
Cash on hand $300.15. 

66. Immediately after the cash is balanced for the month you must enter 
amount on hand as shown by item da, Plate 16. This is done every time the cash 
is balanced — daily, weekly or monthly. If many transactions occur it is best to 
balance daily, or weekly at the latest, where but few take place, once a month 
will answer, as shown in this illustration. 

JUNE 2. 
Wm. George, Troy, Ohio, to whom Fox shipped Seed Corn on April 10th, writes 
that it hasn't arrived — that it's now too late — he can't accept, and wants his 
money refunded. Although a shipper's responsibility ceases when goods are de- 
livered to R. R. Co., he refunds the money ($15.00) and makes claim to the C, 
H. & D. R. R. for the amount lost, plus the expense of draft. 

67. Rather than antagonize a customer Fox decides to collect the amount 
of this shipment from the R. R. Co., himself. First— He has no account with 
George, so when he sends draft to George for the amount of loss, he must debit 



HOW TO KEEP FARM ACCOUNTS 



65 



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the account to which the sale was credited, to Production. (See Plate 17, item 
ca.) Second— The draft costs 10 cents, which he charges to Expense. (Plate 
17, item cb.) Third— Fox is now out the Seed Corn and the expense of draft; so 
he charges the C, H. & D. R. R. with $15.10, the amount he is short by the 
transaction. Plate 17, item cc.) Fourth— In double entry there must be a debit 
for every credit, and having debited the C. H. & D. R. R. with $15.10, he must 
also credit Production for the same amount. (Plate 16, item db.) In making 
claims to Railroads they insist on the original Bill of Lading in total losses, 
and both the Bill of Lading and Expense Bill (freight receipt) where partial 
loss is sustained. To make claim for loss, such as described in transaction above, 
the following is necessary: (1) Copy of Invoice to George. (2) Original Bill 
of Lading. (3) attach (1) and (2) to an invoice made out in name of R. R. 
These should be given to the local agent. But R. R.'s move slowly in paying 
claims. After a reasonable length of time it is well to stir them up at intervals, 
and let them know you are looking after your end— are a business farmer and 
know what you're about. Refer to paragraphs 197 and 199. 

JUNE 8 
He sells his wool— 726 lbs, at 16c. Pays 60c for "re-setting" two shoes on 
Queen, and $3.00 for repairs on Mower. 



66 HOW TO KEEP FARM ACCOUNTS 



68. First — Fox doesn't want accounts opened with everything he grows — 
too much detail. His sales are all entered to the credit of his Production ac- 
count, hence, the Wool sold above is entered as shown on Plate 16, item dc. 
See paragraph 158. 

Second — The inevitable Expense again. But his horses must be shod, and 
the Clover is coming on fast. The mower is now ready. Both charged to Ex 
pense. (Plate 17, item cd.) See 161 and 163. 

JUNE 22 
He pays John Dye and Sam Petit each $6.00 for four days' labor. 

69. Labor, too, is quite an item and he wants to know how much it costs 
him for the year. All extra help he employs he charges to Labor account. For 
entry see Plate 17, item ce. Refer to 183. 

JUNE 24. 
He sells 20 Hogs, averaging 230 lbs. each, at $5.40 and pays his June taxes — 
$32.64. 

70. First — As everything Fox sells off the farm is credited to Production, 
the proceeds for the Hogs is credited to that account. (Plate 16, item dd.) Sec- 
ond — He opens an account for Taxes and Insurance. (Plate 17, item cf. Refer 
to 193. 

JUNE 28 
Ed Wise draws $20.00 on account. 

71. Although this item is for Labor, yet Wise is hired by the year and 
wants to draw his money as he needs it. This necessitates opening an account 
with Wise, and all money drawn by him must be charged to him. (Plate 17, 
item eg.) Refer to 177 and 178. 

JUNE 30 
He balances his cash — $581.37 on hand. 

The cash on hand is $581.37, and as that agrees with the balance shown by 
the Cash Book he rules the closing lines as he did in April. (See Plates 16 and 
17, items de, ch and ci.) 



HOW TO KEEP FARM ACCOUNTS 



67 



D 


r. 


TRIAL BALANCE, JUNE, 1901 


Cr. 




CB 


Cash 


$ 58i 


37 


Plate 


61 


J. Fox 


$10246 


3i 


Plate 


62 
66 
68 
70 
72 
74 
78 
80 

84- 
86 


Clovermead 

Bills Rec-vable 

Production 

Expense 

Feed 

Implements 

Wise 

Labor 

Taxes 

C, H & D Ry. 


9600 
70 

1006 
66 

73 
754 
20 
27 
32 
15 


00 
00 
79 
05 
36 
00 
00 
00 
64 
10 




65 


Bills Payable 


2000 


00 




1 


$12246 


3i 


,$12246 | 


3i 



Trial balance for June is shown above. 



68 




HOW TO KEEP FARM ACCOUNTS 










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TRANSACTIONS FOR JULY, 1901 
JULY i 
Cash on hand $581.37. 

Whenever the cash account is balanced — whether daily, weekly or monthly, 
the first entry after balancing is to debit cash for the amount on hand. (Plate 
20, item da.) 

JULY 15 
Wm Wood pays his note of $70.00 due today with interest at 6%. 

72. All notes we hold given to us in settlement for money loaned or in 
payment of products sold are debited to Bills Receivable. Wood pays his note 
today with interest. We now credit Bills Receivable for the face of the note 
as shown on Plate 20, item db. (See 143 and 147.) 

We must also credit the interest, therefore, open an account with Interest 
and credit it as shown on Plate 20, item dc. (Look up 186 and 189.) 

JULY 20. 
He sends the Breeders' Gazette $6.00 and the National Stockman $5.20 to pay 
for his advertisement of Seed Corn. The money-order cost him 16 cents. 

73. As the amount Fox pays for advertising is small he doesn't open an ac- 
count with it, but charges it to Expense. See Plate 21, item ca. Refer to 161. 

JULY 21 
He accepts the Stock Scale put in for him by E. Thomas and pays $65.00. 

74. Although scales might be considered under the head of Building and 
Improvements, yet, after putting them in they are a part of the farmstead's 
equipment as much as are fences or sheds. Rather than charge to Improvements 
and inventory them from year to year. Fox prefers, as they are a fixture, to 
charge them at once to Expense. (Plate 21, item cb.) Read 129. 







HOW TO KEEP FARM ACCOUNTS 








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JULY 28 
He buys ioo bushels of Oats at 32c. 

75. Fox doesn't grow any Oats. He buys them to feed, and so charges to 

Feed, as he wants to know how much he pays for it during the year. Plate 21, 

item cc.) Refer to 168. 

JULY 31 

Cash balance today shows $547.21 on hand. 

Refer to April, May and June closing of cash accounts. (Plate 21, item cd.) 

Dr. TRIAL BALANCE, JULY, 1901. Cr. 





CB 


Cash 


$ 547 


21 


1 

Plate 


61 


J. Fox 


$10246 


31 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


00 




68 


Production 


1006 


79 


" 


83 


Interest 


4 


20 




70 


Expense 


142 


4i 














72 


Feed 


105 


36 














74 


Implements 


754 


00 














78 


Wise 


20 


00 














80 


Labor 


27 


00 














84 


Taxes 


32 


64 














86 


C, H. & D. Ry. 


15 


10 


















$12250 


5i 


1 




|$I2250 


51 



If care is used when posting the Cash Book and footing the different ac- 
counts in the Ledger no great trouble need be found in taking the Trial Balance. 
Note the Bills Receivable account doesn't appear in this months's balance. That 
was paid, and as the account balanced, is now closed. 



70 




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TRANSACTIONS FOR AUGUST, 1901. 
AUGUST 1 
Cash on hand $547.21. 

Refer to previous months. (Plate 24, item da.) 

AUGUST 3 
He gives Ed Wise $10.00 on account. 

See Plate 25, item ca. Refer to 177 and 178. 

AUGUST 15 
The roads are good and he has time, so he puts in the coal needed for winter — 
10 tons, at $5.75. 

76. All money drawn for personal use should be charged to Fox. He buys 
the coal, now that he can put it in for winter, and charges the amount it cost 
to his (Fox) personal account. (Plate 25, item cb.) See no. 

AUGUST 23 
He pays Joe Morgan $24.00 for threshing 800 bushels Wheat, at 3c. 

77. Fox charges his threshing bill to Expense, because, at the end of the 
year, by keeping his Production account distinct, it shows at the close just what 
the annual sales from the farmstead amounts to. (Plate 25, item cc.) Refer to 
161 and 163. 

AUGUST 28 
He buys 100 lbs. Linseed Meal at $27.00 a ton, and a Keg of Nails, at $2.70. 

78. First — He charges Linseed Meal to Feed. (Plate 25, item cd.) See 
168. 

Second — The nails to Expense. (Plate 25, item ce.) Refer to 162. 







HOW TO KEEP FARM ACCOUNTS 








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AUGUST 30 
He sells 80 bushels of Wheat at 80. 

79. All products sold — no matter what — he credits to Production. (Plate 
24, item db.) Refer to 158. 

AUGUST 31 
He balances his cash — $1,091.66 on hand. 

Refer to April and May closing. The entry, (Plate 25, item cf.) 

Dr. TRIAL BALANCE, AUGUST, 1901 Cr. 





CB 


Cash 


$ 1091 


66 


Plate 


61 


J. Fox 


$10188 


81 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


00 




68 


Production 


366 


79 


" 


83 


Interest 


4 


20 




70 


Expense 


169 


11 














72 


Feed 


106 


7i 














74 


Implements 


754 


00 














78 


Wise 


30 


00 














80 


Labor 


27 


00 














84 


Taxes 


32 


64 














86 


C. H. & D. Dy. 


16 


10 


















$12193 


01 








$12193 


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TRANSACTIONS FOR SEPTEMBER, igoi. 
SEPTEMBER i 

Cash on hand $1,091.66. 

For entry sec Plate 28, item da. 

SEPTEMBER 5 
He buys 2^ tons Fertilizer at $18.00. 

SO. Expense. (Plate 29, item ca.) Sec 162. 

SEPTEMBER 7 
He sends draft to Geo. E. Scott, Mt. Pleasant, Ohio, for 37^ bushels Fultz wheat 
for seed at $1.00, F. O. B. Bank charges 10c for draft. 

81. This transaction charged to Expense. (Plate 20, item ca.) Refer to 
155 and 162. 

SEPTEMBER 8. 
Two tons of Middlings cost $24.00 a ton. 

82. Feed. (Plate 29, item ce.) Refer to 168. 

SEPTEMBER 10 
He gave his wife $20.00. 



HOW TO KEEP FARM ACCOUNTS 



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83. A personal matter with Fox, and charged to his personal (J. Fox) ac- 
count. (Plate 29, item cd.) Refer to no. 

SEPTEMBER 18 
Freight on Seed Wheat costs $2.56. 

84. Expense. (Plate 29, item ce.) Refer to 155 and 162. 

SEPTEMBER 20 
He buys 4 bushels of Timothy Seed of the Phillips Seed Co., Toledo, Ohio, for 
which he pays $8.00. 

85. Expense. (Plate 29, item cf.) Refer to 155 and 162. 

SEPTEMBER 28 
He pays John Betts $12.50 for ten days' labor. 

SEPTEMBER 30 
His cash on hand amounts to $918.00. 

He balances his cash for the month. (Plate 29, item ch.) 



74 



HOW TO KEEP FARM ACCOUNTS 



Dr. 



TRIAL BALANCE, SEPTEMBER, 1901. 



Cr. 



Plate 



CB 

62 
68 
70 
72 
74 
78 
80 

84 
86 



Cash 

Clovermead 

Production 

Expense 

Feed 

Implements 

Wise 

Labor 

Taxes 

C, H. & D. Ry. 



$ 918 

9600 

366 

262 

154 

754 

30 

39 

32 

IS 



(I2I/3 01 



00 
00 

79 
27 

7i 
00 
00 
50 
64 
10 



Plate I 61 ] John Fox 



65 

83 



Bills Payable 
Interest 



|$ioi68 
2000 
4 



$12173 01 



The Trial Balance is again taken and is simply the face of the Ledger. It 
should be taken every month. 



Transactions for October, 1901 



;6 




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XX 





TRANSACTIONS FOR OCTOBER, 1901 
OCTOBER 1 
Cash on hand $918.00 
Plate 32, item da. 

OCTOBER 3 
He gives Ed Wise $10.00 on account. 
Plate 33, item ca. Refer 178. 

OCTOBER 15 • 

He sells 25 head of Hogs, which average 195 lbs., for $5.25. 

86. Production. (Plate 32, item db.) See 158. 

OCTOBER 20 
He sells 150 bushels of Potatoes at 45c. 

87. Sec Plate 32, item dc. See 158. 

OCTOBER 25 
He takes 20 bushels of Potatoes for personal use, and also gives Ed Wise 20 
bushels, market price 45c 

88. Production should be credited for anything taken for personal use 
from what is raised on the farm. We credit Production, (Plate 32, item dd) and 
debit both Fox and Wise for the number of bushels they take. (See Plate 33, 
items cb and cc.) Refer to no and 179. 

OCTOBER 30 
He pays John Betts $1.25 a day for 15 days' labor. 
Labor. (Plate 33, item cd.) See 183. 

OCTOBER 31 
He balances his cash — $1206.13. 
Plate 33, item ce. 



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TRIAL BALANCE 


, OCTOBER 


1901. 


Cr. 






CB 


Cash 


$ 1206 


13 


Plate 


61 


John Fox 


$10159 


81 


Plate 


62 


Clovermead 


9600 


00 


" 


65 


Bills Payable 


2000 


00 


" 


68 


Production 


3i 


9i 


" 


83 


Interest 


4 


20 


" 


"O 


Expense 


262 


27 












" 


7 2 


Feed 


154 


7i 












" 


74 


Implements 


754 


00 














78 
8o 
84 
86 


Ed Wise 

Labor 

Taxes 

C, H. & D. Ry. 


49 
58 
32 
15 


00 

25 
64 
10 


















$12164 


01 






[$12164 


01 



78 



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TRANSACTIONS FOR NOVEMBER, 1901 
NOVEMBER i 

Cash on hand $1206.13. 
Plate 36, item da. 

NOVEMBER 15 
He sell 117 lambs, averaging 98 lbs. each, at $5.50, and buys 500 bushels of corn 
at 30c. 

89. The Lambs credited to Production (Plate 36, item db), and the Corn 
charged to Feed. (Plate 37, item ca.) See 159 and 168. 

NOVEMBER 20 
He sells 34 head of Hogs at $5.25. Average weight 220 lbs. 
Production. (See Plate 36, item dc.) See 159. 

NOVEMBER 23 
He pays for Husking and Shredding his Corn crop, 2,000 bushels, at 2% cents 
a bushel. 

90. Expense. (Plate 37, item cb.) Refer to 163. 

NOVEMBER 29. 
According to contract made in March he sells the Williams Seed Co., of Toledo, 
his crop of corn for seed at 25 cents a bushel above market price. 1,600 bushels 
at 60 cents. 

From the above we note that Fox has contracted his corn crop at 25 cents 
a bushel above market price. His crop of 2,000 bushels, after sorting, left 1,600 
bushels of prime seed, which he now delivers. The price, 60 cents, is 25 cents 
above the market price. Fox feels he can well afford to raise corn by contract and 
buy all he needs to feed at these figures. He credits Production. (See Plate 
36, item dd.) Refer to 158. 







HOW TO KEEP FARM ACCOUNTS 








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NOVEMBER 30 
He pays John Betts and Sam Pettit each $12.50 for ten days' labor, and balances 
his cash — $2964.46 on hand. 

Refer to Plate 27, item cc and cd for above, and look up 183. 



D 


r. 


TRIAL BALANCE 


, NOVEMBER, 1901 


Cr. 






CB 


Cash 


$ 2964 


46 


Plate | 61 


J. Fox 


$10159 


81 


Plate 


62 


Clovermead 


9600 


00 


" 1 65 


Bills Payable 


2000 


00 




"o 


Expense 


312 


27 


" 


69 


Production 


i95i 


42 




72 


Feed 


304 


71 


" 


83 


Interest 


4 


20 




74 


Implements 


754 


00 














78 


Ed Wise 


49 


00 














80 


Labor 


83 


25 














84 


Taxes 


32 


64 














86 


C, H. & D. Ry. 


16 


10 












1 |$i4n«5l4.1 




1 


$14115 I 43 



The Trial Balance is given to show how it varies from month to month. 
Compare it with those that precede and follow it. 



8o 




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TRANSACTIONS FOR DECEMBER, igoi 

DECEMBER i 
Cash on hand $2964.46. 

DECEMBER 5 
Ed Wise wants 3 Hogs to butcher, same to be charged to his account. Weight 
averages 240 lbs., at $5.50. 

91. This entry is similar to that of October 25th. Wise is charged with the 
amount (Plate 41, item ca) and Production credited. (Plate 40, item db.) Refer 
to Examples 88 and 179. 

DECEMBER 8 
He butchers 3 Hogs himself. Average weight 232 lbs., at $5.50. 

92. Credited to Production (Plate 40, item dc) and debited to J. Fox (Plate 
41, item cb) for the same reason as given under Transaction of October 25th. 
Refer to no. 

DECEMBER 10 
He has some shoeing done, $4.75. 

Expense. (Plate 41, item cc.) Refer to 163. 



HOW TO KEEP FARM ACCOUNTS 



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DECEMBER 15 
He gives his wife $50.00 and takes $47.00 himself for personal use. 

93. Charged to his personal account (Plate 41, item cd.) Refer to no. 

DECEMBER 18. 
He buys 200 bushels of Oats, paying 30 cents. Renews his subscriptions to the 
Breeders' Gazette ($2.00), National Stockman ($1.00), Ohio Farmer (60c), Farm 
Journal (40c), Rural New Yorker ($1.00), Practical Farmer (60c), and the Amer- 
ican Sheep Breeder ($1.00), making a total of $6.60. He pays 12 cents for money- 
orders, and for postage stamps $2.00. 

9-4. Oats charged to the Feed account (Plate 41, item ce). Subscriptions 
to farm papers he charges to Expense (Plate 41, item cf). The money-orders and 
stamps are also Expense, therefore, he includes it in the same entry. Refer to 
161 and 168. 

DECEMBER 20 
He begins to think he ought to have a bank account. Doesn't like the idea of 
having so much money in the house, therefore, he opens an account with the 
First National of his County Seat by depositing $2,750.00. 

95. Fox charges or debits the bank for the money he deposits today (Plate 



82 HOW TO KEEP FARM ACCOUNTS 

41, item eg) and will open an account with the Bank in the Ledger. It is true 
that many take exception to keeping the bank account in the Ledger, and sonic 
accountants characterize it as "old fogyism," but the conditions which govern 
farm accounting are different than those of commerce. The farmer will find 
it a great source of satisfaction to have it there — ready to refer to at any time. 
Further, when the bank returns him his cancelled checks, he can compare those 
cancelled with those given out and tell at a glance if any have not been presented 
for payment. But more than all, a farm Ledger should show, for various reasons, 
every business transaction of the farmstead for the year. It's more than likely 
the owner himself will keep the books — or rather book, and if death should sud- 
denly ensue, the Ledger ought to be kept so as to furnish a guide to those of his 
family who take up the management of the farmstead and continue it along pros- 
perous lines. Refer to 212. 

DECEMBER 23 
He gives Ed Wise check for $50.00, and also writes another for $10.00 for per- 
sonal use. 

96. He debits Wise for check (Plate 41, item ch) and as this is the first 
check he has given out, he numbers it No. 1. He has now debited Wise, but 
as he is going to open an account with the Bank in his Ledger he must also 
credit the Bank for this check No. 1, which he does in Entry dd, Plate 40. In 
posting this entry dd to the Bank account (Refer to Plate 89, item dd) he writes 
in the explanation column Ck. No. 1, so that when comparing the cancelled checks 
returned by the Bank about the first of the month he can check over the ac- 
count and see just what checks have been presented for payment. On the stub 
of his check book he also writes the number so that he can number each check 
as he makes it without having to refer to the Ledger account to find the number 
of the last check. 

He also charges himself for Check No. 2, which he makes for personal use 
(Plate 41, item ci) and credits the Bank (Plate 40, item de for the same.) Refer 
to no and 178. 

DECEMBER 31 
Cash balance shows $43.99. 



HOW TO KEEP FARM ACCOUNTS 



8.1 



Dr. 


TRIAL BALANCE 


, DECEMBER, 1901 


Cr. 






CB 


1 
Cash |$ 43 


99 


Plate 


61 


J. Fox 


$10014 


53 


Plate 


62 


Clovermead 9600 

1 


00 


" 


65 


Bills Payable 


2000 


00 


" 


70 


Expense 325 


74 


" 


69 


Production 


2029 


30 


•■ 


72 


Feed 


364 


7i 


" 


82 


Interest 


4 


20 


" 


74 


Implements 


754 


00 












" 


78 


Wise 


138 


60 












" 


80 


Labor 


83 


25 












•• 


84 


Taxes 


32 


64 












" 


86 


C, H. & D. Ry. 


15 


10 














88 


First Nat. Bk. 

1 


2690 


00 
















|$ 1 4048 


03 






|$I4048 | 03 



HOW TO KEEP FARM ACCOUNTS 



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TRANSACTIONS FOR JANUARY, 1902 
JANUARY 1 
Cash on hand $43.99. 
Plate 44, item da. 

JANUARY 2 
He pays his note of $500.00 due today, and interest on mortgage held by his bank. 

97. First— Debit Bills Payable. (Plate 45, item ca.) Refer to 137. 

Second — Debit Interest for amount paid on mortgage. (Plate 45, item cb.) 

Refer to 187. 

Third — Credit the Bank for check Xo. 3, covering the note due today and 

interest on mortgage. (Plate 44, item db.) Refer to 213. 

JANUARY 12 
He draws $30.00 from the bank for expenses and attends the annual meeting 
of the State Board of Agriculture. 

Two Entries. Plate 45, item cc. and Plate 44, item dc. Refer to no and 213. 

JANUARY 22 
The C, H. & D. sends him check of $15.10 for his claim made in June, 1901, for 
Seed Corn lost in transit. 

The C, H. & D. finally pay him for shipment lost the April previous, and he 
had opened an account with them, he now credits them. (Plate 44, item dd.) 
This is equivalent to "Accounts with persons to whom we sell "Produce." See 
197- 

JANUARY 30 
He pays his December, 1901 Taxes, $32.64, by check, and deposits the check for 
$15.10 received frpm the C, H. & D. to his credit in the Bank. 

98. Taxes debited to Taxes and Insurance (Plate 45, item ed). Refer to 
194. The C, H. & D. check he deposits in the Bank to be credited to his account, 
therefore, he debits the Bank (Plate 45, item ce) for the amount of the check, 
$15.10. Refer to 212. 

JANUARY 31 
He balances his cash — $43.99 on hand. 



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TRIAL BALANCE, JANUARY, 1902. 



Cr. 





CB 


Cash 


$ 43 


99 • Plate 


61 


J. Fox 


1 
$ 9984 1 53 


Plate 


62 


Clovermead 


9600 


00 " 


65 


Bills Payable 


1500 


00 




70 


Expense 


325 


74 


69 


Production 


2029 


30 


" 


72 


Feed 


364 


71 










" 


74 


Implements 


754 


00 










" 


78 


Wise 


138 


60 










■• 


80 


Labor 


83 


25 












82 


Interest 


115 


80 












84 


Taxes 


62 


28 












88 


First Nat. Bk. 

1 


2022 


46 










1 I$I35I3 I83 


' 1 


$13513 


83 



86 



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TRANSACTIONS FOR FEBRUARY. 1902 
FEBRUARY 1 
Cash on hand $43-99- 

FEBRUARY 2 
He gives Ed Wise check for $10.00. He has the shoes sharpened and reset on 
Jack and Jim, for which he pays $1.40 in cash. 

First — Wise charged with cluck (Plate 40. item ca). See 178. 
Second — Bank credited for this check (Plato 48, item db). Refer to 213. 
Third — Shoeing is Expense and paid in cash (Plate 48, item cb). Refer to 
163. 

FEBRUARY 7 
He buys a Bob Sled, $15.00, also buys a ton each of Bran, $21.00, and Middlings, 
$24.00, giving check for same. The Bank gives him his cancelled checks for 
January. 

99. First — Bob Sled charged to Implements (Plate 40. item cc). Refer to 
T.v 

See. uul — Bran and Middlings charged to Feed (Plate 49, item cd). See [68 

Third— Bank is credited for both cheeks \'o. 7 and No. 8 — given in pay 
ment For the Bob Sled and the Feed (Plate 48, items de and dd). See 213. 
About Cancelled Checks, see remarks after Plates 88 and 80. 



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FEBRUARY 10 
4^4 bushels Clover Seed costs $6.50 a bushel. 

100. First — Expense (Plate 49, item ce). Refer to 162. 

Second — Credit the Bank for amount of check (Plate 48, item da). See 213. 

FEBRUARY 15 
He has long wanted the 40 acres originally a part of Clovermead Farm, and buys 
it for $82.50 an acre. The First National Bank loans him the money at 5% on 
ten years' time, agreeing to accept payment of the whole or any part of principal 
on any interest day after five years. He secures the bank by mortgage. 

101. Charge Clovermead Farm with the amount of the mortgage given to 
the Bank (Plate 49, item cf). Refer to 117 and 119. 

Second — Credit Bills Payable for the mortgage (Plate 48, item df). Sec 139. 

FEBRUARY 27 
He pays for 2,000 four-inch tile at $12.50 a thousand. Check No. 10. 

102. First — Expense (Plate 49, item eg). See 161 and 162. 

Second — Credit Bank for check No. 10 (Plate 48, item dg). Refer to 213. 



FEBRUARY 28 



Cash balance amounts to $42.59. 



88 



HOW TO KEEP FARM ACCOUNTS 



Dr. 



TRIAL BALANCE, FEBRUARY, 1902. 



Cr. 



Plate 



CB 
62 
70 
72 

74 



82 

84 



Cash 

Clovermead 

Expense 

Feed 

Implements 

E. Wise 

Labor 

Interest 

Taxes 

First Nat. Bk. 



> 42 

12900 

381 

409 

769 

148 

83 

US 

65 

1898 



59 
00 

39 

71 
00 
60 



28 

21 



>l68l3 I 83 



Plate 



61 

65 
69 



J. Fox 

Bills Payable 

Production 



$ 0984 
4800 
2020 



53 
00 
30 



$16813 I 83 



Transactions for March, 1902 



Part Six 

THE LEDGER 



04 



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THE PROPRIETOR'S ACCOUNT 

106. This account represents the owner's interest in the farm. It shows 
the amount of his investment in the beginning, the additional investments he 
makes and what he withdraws. It also shows at the time of closing how much 
he has gained or lost and his net capital or net insolvency. 

107. This is true whether there be but one proprietor or several, but when 
two or more persons unite in conducting a business it is called a partnership. In 
cases of partnership, an account is opened with each of the partners, and each 
of them credited for what lie puts into the business and debited for what he 
withdraws. 

108. Usually, if one proprietor, or several, two accounts are opened with 
each. One showing the investment and the other (private account) showing what 
he draws for personal use and his salary, if any. But for ordinary farm pur- 
poses two accounts are not necessary. In this set the proprietor's account in- 
cludes his personal account as well, and at the end of the year, he is credited with 
the salary to which he thinks he is entitled and the net gain. If a partnership, 
each partner's account would be kept in the same manner — the division of the 
net gain or net loss divided pro-rata or as agreed upon when the agreement or 
partnership was entered into. This account is debited and credited as follows: 







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DEBIT 


CREDIT 


109. For all the capital he with- 


112. For his net investment at 


draws from the business. 


the beginning of business, which is 


HO. For all cash he may draw 


found by deducting the sum total of 


or products he takes from time to 


his Liabilities from the sum total of 


time, for his personal use. 


his Resources. 


111. For his net loss as shown 


113. For all additional invest- 


by the Loss and Gain account at the 


ments. 


end of the year. 


114. For salary allowed, if any. 




115.* For his net gain as shown 




by the Loss and Gain account at the 




end of the year. 



TO CLOSE THIS ACCOUNT AT THE END OF THE YEAR 

116. After all the accounts in the Ledger showing losses and gains have 
been closed into the Loss and Gain account — debit or credit this account for the 
net loss or net gain, as shown by the Loss and Gain account. Now, find the 
difference between the two sides. If the credit side is the larger, write on the 
debit side in red ink "To Balance" and the amount of the difference which will 
make the account balance. Then rule the closing lines with red ink and enter in 
black ink the total amounts between them. After which, write on the credit 
side just below the closing lines in black ink the date beginning the new year, 
and the amount of the difference between the sids of the account which is the 
Present Worth. 



o6 HOW TO KEEP FARM AC COUXTS 

Refer to Plates 61 and 62 and you will see that the net gain of Fox is $2,- 
123.57, which we credit to him, and then, to balance the account we write in red 
ink on the debit side the difference between the sides, i. c., $12,703.60 and the 
words "To Balance." We then rule the closing lines and bring down on the 
credit side in black ink the date and the amount, $12,703.60 — which is his "Present 
Worth" at this time. 



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THE FARMSTEAD 

117. This account is in some respects equivalent to the capital stock account 
of a corporation. The proprietor's account represents the owner's interest in the 
business, and this, the business itself. The principal difference is, that this ac- 
count continues to stand untouched from year to year unless we add more 
acreage to the farm or sell from it a part. Therefore, the farmstead account 
should be debited and credited as follows: 



DEBIT 


CREDIT 


118. At the beginning for what 
it costs us. 

119. For all additional land which 
we buy to include in its acreage. 


120. For what we sell from it. 



REAL ESTATE. 

121. Perhaps you may own other farms beside the one you work, or it 
may be property in town. You rent them, and wanting to know what they pay 
you, on the investment, you open an account with each. In such cases it is best 
to enter them by name, such as "Beechwood Farm" or the "Brown Property." 
Debit and credit as follows: 



DEBIT 



122. When books are opened for 
value. 

123. For all improvement. 

124. For all taxes. 

125. For all insurance. 



CREDIT 



126. For all rentals. 

127. For the amount it brings if 
you sell it. 







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AT THE END OF THE YEAR. 

128. To close; write on the credit side, in red ink, "By Inventory" for the 
amount of valuation. The amount the credit side exceeds the debit is the gain, 
and next, write on the debit side, in red ink, "To Loss and Gain" for amount 
of the gain. Rule the closing lines and enter the totals between them. Next, 
write in black ink under the closing lines on the debit side "To Inventory" and the 
amount of valuation. Carrying the amount of gain to the debit side of "Loss" 
"Gain" account, writing in black ink, "By Beechwood Farm" and amount gained. 

In case the debit side exceeds the credit it will be a loss, and in that case the 
entries are similar to those closing any account showing a loss as explained under 
the various accounts in the illustration. 

BUILDING AND IMPROVEMENTS. 

129. "The rule of law is, and for centuries has been, that whosoever owns 
land, owns all there is above it and all there is below it. Naturally then, when buy- 
or selling farms, all buildings, and everything fairly belonging to them, go with 
the farm. In general, whatever the owner of the farm fastens to the ground or 
to a building is a fixture, and he sells it when he sells the farm." — Parson's Laws 
of Business. 

Therefore, after a farm is improved, having good fences, is well tiled, and 
with satisfactory buildings, the small annual expenditures to maintain the farm- 
stead might as well be charged to "Expense" unless there is some specific reason 
for doing otherwise. 

But if your farm is unimproved and a new house, barn, fences and tiling is 
needed or anticipated, an account should be opened for "Building and Improve- 
ments" and all money paid for such item should be charged to it. Then, at the 
end of the year, when the books are closed, this account should be credited "By 
Inventory" for the sum total of the debit side of the account, less a certain per- 
centage, say ten, which should be charged to the "Loss and Gain" account each 
year for depreciation. By doing this the first cost of building and improve- 
ments, which, of course, will constantly depreciate, is distributed equally for a 
period of years. 

If Fox, in the illustration given herein, had had a "Building and Improve- 
ments" account, the proper entry for the Stock Scales he bought July 22A (Plate 



LOFC, 



HOW TO KEEP FARM ACCOUNTS 



21, item cb) would have been to charge them to that account instead of "Ex- 
pense," but as his farm is improved, it is better in such cases to call items a loss 
at once than to open an account on purpose for them. However, this is a mat- 
ter of opinion, and the disposition of such items must be decided by the owner 
of the farm. 

When you have a "Building and Improvements" account you should debit 
and credit as follows: 



DEBIT 


CREDIT 


130. For the value of 


the build- 


133. At the end of the year "By 


ings and improvements as 


shown by 


Inventory" for the sum total of the 


the inventory. 




debit side less a certain percentage, 


131. For the cost of 


any build- 


say ten, for annual depreciation. 


ings or improvements we 


may build 


134. By Loss and Gain for the 


or put in during the year. 




difference between the sides. (See 


132. For all repairs 


we havt 


below.) 


made on buildings. 







AT THE END OF THE YEAR. 

135. To close this account: After having decided what per cent, of de- 
preciation you are going to charge annually for "wear and tear," or having es- 
timated their present value, write on the credit side in red ink "By Inventory" 
and the amount. 

Now find the difference between the sides, and the amount the debit exceeds 
the credit side will be a loss which enter on the credit side in red ink "By Loss 
and Gain" and the amount of difference which will make the account balance. 

Rule the closing lines and enter the totals between them in black ink. 

Next, write on the debit side below the closing lines, in black ink, "To In- 
ventory" and bring down the amount credited when the account was closed. 

Now, carry the amount lost over to the "Loss and Gain" account, writing 
on the debit side of that account in black ink "To Building and Improvements" 
for the amount lost, 



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BILLS PAYABLE. 

136. This is an account of the notes we give to others, hence Bills Payable, 
because we have to pay them. Whenever we give a note we credit Bills Pay- 
able, and when we pay that note, we debit Bills Payable. From this you will 
understand that the difference between the two sides of this account should at all 
times agree with the amount of notes we owe. Therefore: 



DEBIT. 



137. When we pay any note or 
notes we owe. 



CREDIT 



138. At the commencement of 
business with all the note we owe. 

139. For all notes we give to 
other parties, made by us payable to 
them. 



AT THE END OF THE YEAR. 

110. In closing this account at the end of the year, find the difference be- 
tween the sides and then write on the debit side, in red ink, "To Balance" for 
the difference which will make the account balance. Rule the closing lines and 
enter in black in the total amount between them. Nexl write on the credit side 
below the closing lines "By Balance" in black ink for the difference between the 
sides of the account, which should exactly agree with the amount of notes we 
owe. (See Plates 64 and 65.) 

This account is never closed unless it balances or it is necessary to forward 
to a new page. As the farmer will find it best to have a new Ledger each year 
this account is closed as above at the" end of the year. 

When transferring the balance to the new Ledger, be sure you enter the 
balance on the credit side. In transferring any account enter the balance on the 
side of the new account upon which it was brought down on the old. 



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141. WHEN YOU PAY YOUR NOTES SECURED BY MORTGAGE.— 

The notes Fox has given to the First National Bank are secured by mortgage. 
When paying notes thus secured, as he did January 2nd (See Plate 64), he doesn't 
destroy them when paid, but keeps them until all are taken up, for it is absolutely 
necessary they be kept until the mortgage is discharged. 

142. TIME OR SIGHT DRAFTS.— These are, technically speaking, "Bills 
Payable, and you will not, under ordinary circumstances, have much to do with 
drafts, but if a draft should be made on you for one, three or five days sight, and 
you accept it— when paid charge the person making it as it is a cash transaction. 
For instance: If you write Clay Robinson & Co. to send you a car load of 
"feeders" or "stackers," charge the amount of their draft on you to your Pro- 
duction or Live Stock account, writing in the explanation column of your Cash 
Book the details of the transaction. 



104 



HOW TO KEEP FARM ACCOUNTS 



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BILLS RECEIVABLE 

143. If you loan money or sell any of your farm products, taking a note for 
the amount, it is receivable by you, and consequently must be debited to Bills 
Receivable. You take notes for two reasons: In case of legal proceedings you 
do not have to prove the account, or if needing money you can have them dis- 
counted at your bank. In the beginning: 



DEBIT 


CREDIT 


144. For all notes you have on 


147. When any of the notes you 


hand payable to you. 


hold are paid. 


145. For all notes you get from 


148. For all notes you have dis- 


others made or accepted in your 


counted or sell. 


favor. 


149. For all notes you endorse 


146. For all notes made payable 


over to other parties. 


to others and transferred by them to 




you. 





AT THE END OF THE YEAR. 

150. This account, like Bills Payable, is never closed in actual business 
unless it balances or it is necessary to forward to a new page. On the farm 
it is advisable to open a new Ledger each year, therefore, the account is closed 
at the end of the year as follows: 

Find the difference between the sides and write on the credit side "By Bal- 
ance" for this difference, which will make it balance. Then rule the closing lines 
and enter the total amounts between them. Next write on the debit side beneath 
the closing lines in black ink "To Balance" for the amount of the difference which 
should exactly agree with the amount of notes you have on hand. In trans- 
ferring this balance to a new page or a new Ledger it must always be entered 
on the same side — the debit. 



151. If the maker of a note cannot pay it in full when due, but makes a 
part payment, credit "Bills Receivable" for what he pays and endorse on the 
back the note the amount received. 

152. If he wants to renew it, simply debit "Bills Receivable" for the new 
note you get and credit "Bills Receivable" for the old note you surrender to him. 



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153. When you discount a note— credit "Bills Payable" for the face of the 
note and charge the discount deducted by the bank to "Interest." 

154. Notes are always debited or credited at face value. 



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PRODUCTION. 

155. As simplicity in the first essential in account keeping on the farm, after 
accuracy, it is necessary to lessen the number of accounts opened in the Ledger 
as far as practicable. The merchant credits his "Merchandise" account for the 
amount of his sales, the manufacturer credits them to "Manufacturing." The 
farmer can be likened to the manufacturer because he is a producer, and either 
grows or finishes the products of his farm. The most comprehensive title for 
his sales is "Production." It isn't a simple matter to keep an account with each 
field. Much guessing or weighing must be done to do this, and the details soon 
grow irksome with no practical results at the end of the year to show for the 
extra work required. In the end it all goes into the Production account any- 
way, so there's mighty little argument to present for separate accounts with the 
different products and kinds of stock. But the simplicity of crediting all sales 
to Production is clear to every one. (See paragraph 48 for further remarks re- 
lating to this subject.) 

In beginning, all live-stock and products are charged to this account. At 
the end of the year it is credited with what is on hand, the difference between the 



HOW TO KEEP FARM ACCOUNTS 



107 



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two sides showing the sales of the farmstead for the year. Then this difference 
carried to the Loss and Gain account is opposite the items showing the ex- 
penses of operating the farm and the difference between them shows the net re- 
sults of the gain or loss of the farmstead's management for the year. This is the 
practical side of farm accounting, therefore, we debit and credit the Production 
account as follows: 



DEBIT 


CREDIT 


156. In the beginning for all 
grain, hay and live-stock of every 


158. For everything sold we 
raise on the farm. 


kind we have on hand at the market 


159. For all live-stock sold either 


price of each. 

157. For all live-stock we .buy 


grown or bought to feed and fatten. 


during the year. 





AT THE END OF THE YEAR. 

160. To close this account: We write on the credit side, in red ink, the 
amount of all stock and produce we have on hand as shown by the inventory. 



xo8 HOW TO KEEP FARM ACCOUNTS 

Then find the difference between the two sides, and the amount the credit side 
exceeds the debit will be the gain or amount of sales for the year. Next write 
on the debit side, in red ink, "To Loss and Gain" for amount gained or difference 
between the sides which makes the account balance. Now, rule the closing lines 
and enter the total amounts between them, after which write on the debit side 
below the closing lines, the date, "To Inventory" and the amount of the in- 
ventory all in black ink. (See Plates 68 and 69 as an example.) 

After closing the account as above, the amount gained (in the example given 
$4,043.50) is carried to the credit side of the Loss and Gain account (See Plate 
91) writing on the credit side of that account, in black ink, "By Production" and 
the amount gained. 



HOW TO KEEP FARM ACCOUNTS 



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EXPENSE. 
161. No business can be conducted without some expense, and in keeping 
the farmstead up to the highest plane of its earning capacity there are numerous 
items which must be charged to this account during the year. As a general rule 
all items are a loss which go into general improvement or that cannot be in- 
ventoried at the end of the year, and should be charged to this account, there- 
fore, we debit and credit it as follows: 







HOW TO KEEP FARM ACCOUNTS 






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DEBIT 


CREDIT 


162. For everything we buy to 


164. For anything we sell which 


use on the farm and not to sell again, 


has been debited to this account. 


such as stationery, lumber, nails, fer- 




tilizers, seed, tile, etc., etc. 




163. For all we pay out for 




freight, express charges, horse shoe- 




ing, threshing, etc., etc. 





AT THE END OF THE YEAR. 

165. In closing this account find the difference between the sides, if any- 
thing has been credited, if not, write on the credit side, in red ink, "By Loss and 



HOW TO KEEP FARM ACCOUNTS 



Gain" and the amount to make the account balance. Now, rule the closing lines 
and enter the amount in black ink between them. Next, write on the debit side 
of the Loss and Gain account "To Expense" for the amount of loss. For an 
example refer to Plate 70 and 71 and look up the Loss and Gain account (Plates 
90 and 91). 



114 



HOW TO KEEP FARM ACCOUNTS 



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FEED 

166. This could be included in the Expense account, but as most stockmen 
and farmers will want to know how much they pay out for feed it is best that 
an account be opened with it. 



DEBIT 



167. For all feed on hand at the 
commencement as shown by the in- 
ventory. 

168. For all that we buy during 
the year. 



CREDIT 



169. For any feed we sell which 
had been previously charged to this 
account. 







HOW TO KEEP FARM ACCOUNTS 






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AT THE END OF THE YEAR. 



170. To close this account at the end of the year, write on the credit side, 
in red ink, "By Inventory" for the value of the feed we have on hand. Find the 
difference between the two sides and write on the credit side, in red ink, "By Loss 
and Gain" for that difference, which will make the account balance. Rule the 
closing lines and write between them in black ink the totals. Next bring down 
the amount of inventory in black ink on the debit side, writing the date and 
"To Inventory." Then enter on the debit side of the "Loss and Gain" account 
"To Feed" for the amount of Loss on this amount. (See Plates 72 and 73 and 
refer to Plate 90.) 



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IMPLEMENTS 

171. Implements on the farm are the same as the tools and appliances 
of the manufacturer. They arc a visible asset and their worth depends greatly on 
the care taken of them. It is customary among- manufacturers to deduct from 
their inventory of machinery a certain per cent, for "wear and tear.'' This, of 
course, depends on its condition, and also whether it is of a style and pattern 
not superceded by one later and much more desirable. But the per cent, de- 
ducted for depreciation must be decided by the farmer himself. No hard and fast 
rules can be laid down for that. This account is debited and credited as fol- 
lows: 



DEBIT 



172. For the amount on hand as 

shown by the inventory at the begin- 
ning of business. 

17i£. For all we buy during the 
year. 



CREDIT 



174. For all that we sell. 

175. For amount on hand as 
shown by inventory at the end of the 
year. 



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AT THE END OF THE YEAR 

176. To close this account at the end of the year: Same as the Feed ac- 
count which immediately precedes this. See Plates 74 and 75 and compare 
amount carried forward to Loss and Gain, Plate 90. 



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FARM HELP 

177. It isn't necessary to open an account with the different men employed 
on the farm by the day. That should be charged to the Labor Account. But if 
we hire a man or men by the year then a separate account should be opened for 
each and all money paid to them from time to time charged direct to them, 
and the wages allowed each credited to them at the end of the year. The ex- 
ample of the Wise account (Plates ;8 and 79) show how an account should be 
kept when we hire a man by the year. Accounts of this nature arc debited and 
credited as follows: 



DEBIT 



178. For the amounts we pay him 
from time to time. 

179. For all farm products taken 
in lieu of cash on account during the 
year. 



CREDIT 



ISO. At the end of the year for 
amount of wages agreed on. 



HOW TO KEEP FARM ACCOUNTS 



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AT THE END OF THE YEAR 
181. To close, find the difference between the two sides and enter on the 
debit side, in red ink, "To Balance" and the amount which will make the account 
balance. Now, rule the closing lines, enter the totals between them and bring 
down in black ink the amount of the difference, entering it on the credit side 
"By Balance" which is the amount due or to his credit at the end of the year. 
(See Plates 78 and 79.) 



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LABOR 

182. As previously explained under the account preceding this (Farm 
Help) we open an account for each man employed on the farm by the year, 
and also a Labor account to which we charge all sundry held hired from time to 
time. 



DEBIT 


CREDIT 


183. For all wages paid sundry 
help from time to time during the 
year. 

184. At the end of the year for 
the wages we agree to pay the men 
whom we hire by the year and with 
whom we have opened separate ac- 
counts. (See Wise, Plate 79. Fox, 
Plate 61, and Cash Book for March, 
1902. Plates 52 and 53, items de, df 
and cd. 









HOW TO KEEP FARM ACCOUNTS 






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AT THE END OF THE YEAR 

185. To close, enter on the credit side, in red ink "By Loss and Gain" and 
the total amounts paid for Labor as shown by the footing of the debit side. 
This balances the account. We then run the closing lines — enter the amounts 
between them and carry the amount entered on the credit side in red ink to the 
debit side of the Loss and Gain account. (See Plates 8o, 8i and 90.) 



122 




HOW TO KEEP FARM ACCOUNTS 








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INTEREST 
186. If we have interest to pay or hold notes which draw interest we must 
open an account with it. Then it will show us at the end of the year what we are 
paying for the use of money borrowed or what our loans are paying us. 



DEBIT 


CREDIT 


187. For any interest we pay. 

188. For any discount the bank 
deducts from the face of notes we 
have discounted. 


189. For/ any interest we receive 
on notes we hold. 







HOW TO KEEP FARM 


ACCOUNTS 






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AT THE END OF THE YEAR 

190. To close this account we find the difference between the two sides. 
If the credit side is larger, we write in red ink on the debit side "To Loss and 
Gain," which is gain on interest. If the debit side be the larger, we write, in red 
ink on the credit side "By Loss and Gain," which is loss on interest. This makes 
the account balance. Now, rule the closing lines and enter, if there be a loss, on 
the debit side of the Loss and Gain account the amount lost, or if there be a gain, 
on the credit side of the Loss and Gain account the amount gained. (See Plates 
82, 83 and 90.) 

191. DISCOUNT — As discount is simply another name for interest it is 
useless to open a separate account for it, but call interest and discount the same 
and debit or credit both to the Interest account. 

192. ENTRY TO MAKE OF NOTES YOU HAVE DISCOUNTED— 

Sometimes when in need of money we have a note discounted at the bank. If 
you do this, don't forget to credit "Bills Receivable" for the full face of the note 
and debit Interest for the discount deducted by the bank. Then, if this amount 
has been placed to your credit in the bank, debit the bank for the amount you 
receive or the proceeds of the note. 



124 



HOW TO KEEP FARM ACCOUNTS 



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TAXES AND INSURANCE 

193. It is a matter of gratification to know what our Taxes and Insurance 
amount to for the year. All we pay out for either should be charged to this 
account. 



DEBIT 



194. For all we pay for Insurance 
or Taxes. 



CREDIT 



AT THE END OF THE YEAR 

195. To close, write in red ink, on the credit side the date, "By Loss and 
Gain" and the amount necessary to make the account balance. Then rule the 
closing lines and enter between them in black ink the totals of each side. (See 
Plates 85 and 85.) Then carry the amount to the Loss and Gain account, enter- 
ing it on the debit side of that account as shown. (Plate 90.) 







HOW TO KEEP FARM ACCOUNTS 






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196. INSURANCE — Every farmer and stockman is vitally interested in 
Insurance that really insures. And very fortunate it is, too, that there is in- 
surance, in such form as to keep him in direct touch with it, and his interests 
mutual with his fellows. Of late, it is almost an impossibility to insure farm 
property in some states in good Stock Companies, but the Farmers' Mutual Com- 
panies are really safer and much more desirable in every respect; then, too, the 
cost is less. Of the 109 Mutual Companies writing insurance in Ohio in 1899, 
twenty-five of them made no assessments and eight had no losses! The aver- 
age saving of the Mutuals in comparison with the Stock Companies has aver- 
aged 33 cents on every $1.00 of insurance written on the three year term plan. 
This is a consideration worth taking advantage of, for "it's the little leaks in 
business that eats up the profits," and it's the little things on the farm that tend 
to increase them. No really good business man neglects to insure, and no farmer 
can afford to carry the risk of fire himself. Every intelligent farmer understands 
this and should encourage his county organization. 



126 



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ACCOUNTS WITH PERSONS TO WHOM WE SELL PRODUCE 

197. The farmer usually sells his products for cash, but when anything is 
sold on time, an account should be opened with the person sold. Then all pro- 
ducts sold him must be charged to him, and all payments made by him credited 
to him. This account against the C, H. & D. R. R. is equivalent to a personal 
account, and we have charged the R. R. Co. for the amount of seed corn lost 
while in their hands, and have given them credit for their check when it was 
paid. Accounts of this nature are treated as follows: 



DEBIT 


CREDIT 


198. For the amount they owe us 


200. For all cash they pay us on 


when we open our books. 


account. 


199. For all we sell them on ac- 


201. For any produce they re- 


count. 


turn on account. 




202. For all notes they give us in 




settlement of account or to apply on 




account. 



AT THE END OF THE YEAR 

203. To close, at the end of the year, or when we want to transfer to a 
new page, find the difference between the two sides, and if the debit side be the 
larger, write on the credit side, in red ink, "By Balance" for the amount of the 
difference. This makes the account balance, after which rule the closing lines 
and enter between them the totals in black ink carrying the amount necessary 
to make the account balance, forward to the new page or to the new Ledger, 
writing on the debit side in black ink the date — "To Balance" and the amount, 
writing on the old page "To" and on the new page or new Ledger "From" 
which the amount was transferred. 



HOW TO KEEP FARM ACCOUNTS 



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If the credit side is larger, then the "shoe is on the other foot," and you will 
write on the debit side in red ink, "To Balance" and amount of difference be- 
tween the sides which will make the account balance, rule the closing lines, enter 
the totals and carry forward the amount used to balance to the new page or the 
new ledger, writing on the credit side of the new account in black ink, the date, 
"By Balance" and the amount. 

When carrying forward an account to a new page or a new Ledger do 
not forget to write on the old page "To" which and on the new page "From" 
which the account has been transferred. 

ACCOUNTS WITH PERSONS FROM WHOM WE BUY GOODS 

204. These are practically the same as the accounts we keep with persons 
to whom we sell on account, and we debit and credit as follows: 





DEBIT 


CREDIT 




205. 


For all cash we pay on ac_ 


208. For what we owe 


them 


count. 




when we open our books. 




206. 


For all goods we return on 


209. For all we buy from 


them 


account 




from time to time. 




207. 


For all notes we give in full 






or part 


payment of account. 







AT THE END OF THE YEAR 

210. These accounts are balanced and carried forward the same as ex- 
plained under the head of "Accounts With Persons To Whom We Se'l Produce," 
just preceding this, which see. 



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FIRST NATIONAL BANK 

211. It isn't necessary to open an account with your Bank in the Ledger. 
It can be carried along in the Check Book, but taking everything in consideration 
it is preferable to have it in the Ledger on the farm. Each Check given should 
be numbered in rotation, and that number should go in the Cash Book and be 
posted to the Ledger (see Plate 89). Then, when' the Bank hands you your 
cancelled checks, compare them with what you have given out, checking each one 
on the Ledger. You know then, just what checks have been presented for pay- 
ment at the bank. 



DEBIT 


CREDIT 


212. For all currency, checks, 
money-orders or drafts we deposit. 


213. For all checks we make. 



214. To balance, proceed exactly as you would with an account with a 
person to whom you sell on credit, as explained under "Accounts With Persons 
to Whom We Sell Produce," for the principles are the same in both. 

215. BANKS — Banks are a convenience the business farmer can't afford to 



HOW TO KEEP FARM ACCOUNTS 



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ignore. They are, for you, safe places for the keeping of money, securities and 
other valuable paper. The payment of your bills, too, is more convenient by 
check than with currency, and the checks, when returned by the bank, are valuable 
as receipts. Banks sometimes become insolvent, it is true, but there are safe 
and conservative banks in every county seat, or perhaps in a town still nearer 
to you. Select your banker as you would a friend. Be frank with him and 
never test his generosity by allowing your check to be presented for a larger 
sum than your balance. If you do this your relations will be pleasant, and 
if in need of money to move a crop or carry the cattle, sheep and hogs you are 
feeding to a finish, you can secure it from him at reasonable rates, providing, of 
course, you have proven yourself to be a man of charatcer and business ability. 
Then, too, there are many "don'ts" in business, and if you have selected your 
banker, as you should, he is the man to go to for advice if in doubt about any 
business transaction. 

Assuming that you have a bank account, and that you have left your bank- 
book with them, as you do once a month to have it "written up," when it is 
returned to you the balance shown by it should agree with the balance shown by 
the account you keep with the bank in your Ledger or check book unless some 
of the checks you have given out haven't been presented for payment. When 
your book is handed to you with the checks presented for payment during the 
month stamped paid, compare these cancelled checks with those you've made, 
and you will know just what checks are still out. This is where the importance 
of numbering each check is found and why it is best to have a bank account 
in the Ledger intended for farm use. 



130 



HOW TO KEEP FARM ACCOUNTS 



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LOSS AND GAIN. 

216. This account is kept to show the final summing up of our losses and 
gains for the year and is debited and credited as follows: 



DEBIT 



217. At the end of the year for 
all the accounts upon which we have 
lost during the year. 



CREDIT 



218. At the end of the year for 
all accounts upon which we have 
gained during the year. 



AT THE END OF THE YEAR 

219. To close: Find the difference between the two sides. If the credit 
side be the larger, the amount it exceeds the debit is the net gain for the year. 
If the debit side is the larger, the amount it exceeds the credit side is the net 
loss for the year. Referring to the example (Plates 90 and 91), the credit is the 
larger, so we enter the amount it exceeds the debit side, in red ink, on the debit 
side, the date, and "To J. Fox," after which rule the closing lines and enter be- 
tween them, in black ink, the total footings. The amount the credit side ex- 
ceeds the debit is the net gain of Fox for the year, and after this account is 
closed, we carry this amount of $2,123.57 to the credit side of the J. Fox account. 
Then to find his present worth, proceed as explained under the head of "Pro- 
prietor's Account" and illustrated by Plates 60 and 61. 



CLOSING THE BOOKS 

AT THE END OF THE YEAR. 

220. At the end of the year, when your Ledger is in balance, and you 
want to close it to ascertain what you have made or lost, proceed as follows: 



HOW TO KEEP FARM ACCOUNTS 



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First— Take an inventory of all Live-stock, Products, Implements, Feed, and 
Real Estate you have on hand at that time. 

Second— Close all accounts in the Ledger upon which losses or gains have 
been made, as instructed under each. 

Third — Having carried all accounts upon which losses or gains were made 
into the Loss and Gain account, we close that account as instructed. (Refer 
to Loss and Gain Account.) 

221. It is well to remember, in this connection, that when we close the 
Ledger at the end of the year, nothing is left in it but those accounts showing 
either a Resource or a Liability, and that nothing must be carried to the Loss 
and Gain account but those accounts upon which we have lost or gained. To 
help you decide what are Losses or Gains and what are Resources or Liabilities, 
bear in mind that if the debit side of an account is the larger it is always either 
a Resource or a Loss. That when the credit side of an account is the larger 
it is always either a Liability or a Gain. As the Resources and Liabilities are not 
carried to the Loss and Gain account, we must pass them by and do nothing with 
them. But if the debit side be the greater, and a loss, then balance the account 
and carry the loss to the debit side of the Loss and Gain account. If the credit 
side of any account be the larger, and a gain, balance the account and carry the 
amount of the gain to the credit side of the Loss and Gain account. 

When the Ledger is closed at the end of the year, there must be no open 
accounts in it, except those which show a Resource or a Liability, and this is also 
true when the Ledger is opened. 

But before the Ledger can be closed, an inventory must be taken, and the 
on taken by Fox. March 31, 1902, to illustrate the principles of farm accounting, 
as shown in the example given herein follows. Note that the totals of the Pro- 
duction, Feed and Implements on hand are credited to each, as shown on Plates 
68, 73 and 75. Full instructions follow each account as to what you are to do 
after the inventory has been taken 



132 



HOW TO KEEP FARM ACCOUNTS 



232. INVENTORY OF CLOVERMEAD FARM, MARCH 31, 1902: 



PRODUCTION 

Bay Team Jack and Jim....$ 160 00 

Bay Mare Queen 75 00 

Black Mare Bess 60 00 

Two Colts at $15.00 30 00 

Chestnut Mare 175 00 

Two Cows at $35.00 70 00 

One Calf 5 00 

15 Poland China hows at $12 180 00 

1 Berkshire Boar 35 00 

98 Shropshire Ewes at $5.00. 490 00 

1 Ram 45 00 

1 Ram 35 00 

1 Ram 30 00 

807 bu. Corn at 60c 848 20 

40 bu. Potatoes at 50c 20 00 

15 tons Clover Hay at $6.00. . 90 00 

30 bu. Seed Corn at $1.00. ... 30 00 



$2014 20 



FEED 

120 bu. Oats at 38c $ 45 60 

Yi. ton Middlings at $24.00.. 12 00 

Y A ton Bran at $21.00 15 75 

Y 2 bbl. Salt at $1.50 75 



$ 74 10 



IMPLEMENTS 

One Wagon $ 60 00 

One Farmers' Handy Wagon 39 00 

One Surrey 120 00 

One Buggy 30 00 

One Spring Tooth Harrow.. 14 00 

One Adjustable Harrow .... 12 00 

One Roller 19 00 

Two 'Plows at $15.00 30 00 

One Cultivator 40 00 

One Wedder 12 00 

One Corn Planter 27 00 

One Grain Drill 75 00 

One Mower 40 00 

Amount up $ 568 00 



Brought up $ 568 00 

One Cahoon Seeder 3 00 

One Tedder 22 00 

One Corn Sheller 5 00 

One Hay Rake 20 00 

One Hay and Stock Rack... 12 00 
Two Sets Heavy Harness at 

$36.00 . . 72 00 

One Set Light Harness 20 00 

Also Axes, Forks, Log 
Chains, Three Horse Even- 
ers, Wheelbarrows and 
other Miscellaneous Tools 
about the place 10 00 

$ 732 00 
Less 30% discount for the 
"wear and tear" of six 
years' use 219 60 

One Binder $ 100 00 

One Corn Harvester 100 00 

$ 200 00 
Less 5% for one year's de- 
preciation 10 00 

$ 190 00 



One Chicago Sheep Shearing 

Machine $ IS 00 

One Bob Sled 1500 

Brought down 51240 

Brought down 190 00 

$ 732 40 
$ 512 40 



RECAPITULATION 

Production $2014 20 

Feed 74 10 

Implements 73^ 40 

$2820 70 



THE YEARLY STATEMENT 



223. We keep an account with our farmstead, so that we can tell our 
actual financial condition at least once a year. After the Ledger is closed, to get 
the facts before us in a nutshell, we make an annual statement. To keep an ac- 
count for anumber of years, and compare the last with those that precede it, 
is a great aid to successful farming, because it shows us what branch of our 



HOW TO KEEP FARM ACCOUNTS 



*33 



management needs more care and attention. The facts we are able to glean 
from the statement made up at the end of the year as to our progress, more than 
pays us for the labor required to keep the Ledger, as it must be kept, to get 
accurate results. To present these benefits more fully we give the statement as 
Fox would make it from his Ledger, illustrated in the preceding pages. The 
statement follows: 



ANNUAL STATEMENT OF CLOVERMEAD FARM, MARCH 31, 1902. 
RESOURCES LIABILITIES 



CB 


Cash 


$ 42 


! 
59 


6.S 


Bills Payable 


$ 4800 


00 


62 


Clovermead 


12900 


00 


79 


E. Wise 


106 


40 


68 


Production 


2014 


20 


61 


J Fox Present Worth 


12703 


60 


72 


Feed 


74 


10 










74 


Implements 


732 


40 










88 


First Nat'l Bank 


1846 


71 














$17610 


00 






$17610 


00 





LOSSES 








GAINS 






go 


Expense 


$ 408 


39 


9i 


Production 


$ 4043 


50 


90 


Feed 


334 


61 










90 


Implements 


36 


60 










90 


Labor 


958 


25 










90 


Interest 


115 


80 










90 


Taxes and Insurance 


65 


28 










90 


J. Fox, Net Gain 


$ 2123 


57 












1$ 4043 

! 


50 






$ 4043 


50 



RESOURCES AND LIABILITIES 

224. Of course, you understand, if you have studied the instructions, there 
are no open accounts in the Ledger at the end of the year, after the books arc 
closed, except those showing a Resource or a Liability. To make up the annual 
statement: 

(1) Under Resources enter the amount on hand as shown by the Cash 
Book at the close of the last day of the year. When Fox balanced his cash, 
March 3rst (Plate 53), he had $42.59 on hand. This is a Resource, and is the 
first item entered under that head in the statement. 

(2) Taking the Ledger (Plate 62), we find "Clovermead" $12,900.00. This 
also is a Resource, because anything is a resource of value belonging to us; and 
by value, we mean cash, or something we could realize the cash for if necessary. 
And Clovermead Farm, as it is today, would fetch this amount; it's worth that 
much, hence a resource. 

(3) The next open account is Bills Payable (Plate 65). These are notes 
we owe, and as everything left standing on the credit side of the Ledger is either 



134 HOW TO KEEP FARM ACCOUNTS 

a Liability or a Gain, we must decide which of the two it is. This is easy, for we 
know it isn't a gain, because we owe it; therefore, it's a Liability, and so entered 
on the statement. 

(4) The next account, Production (Plate 68), is a Resource. The inventory 
taken today (March 31st), at market price for the Stock, Corn, Potatoes and 
Clover Hay Fox has on hand is $2,014.20. That is the cash value he could 
realize on it if sold. 

(5) Feed is next (Plate 72). This is also a Resource, for the same reason 
that the items in the Production account are. Consequently, we enter the amount 
we have on hand, $74.10. 

(6) Implements follow Feed, and are also a Resource. Inventory shows 
$732.40 as their value today, and they, too, are entered. 

(7) On Plate 79 we find Wise has $106.40 due him. A Liability is some- 
thing we owe. We owe Wise this balance of $106.40 for wages he left stand 
during the previous year, so that amount goes under Liabilities. 

(8) The next account showing a Resource is the First National Bank. All 
cash we have, whether on hand or in the bank, is a resource, and the balance 
Fox has to his credit, $1,846.71, should be so entered in this statement. 

(9) This takes all the open accounts in the Ledger except one — the Pro- 
prietor's account — J. Fox. After all the accounts showing the Losses and Gains 
were closed into the "Loss and Gain" account, and the net gain of Fox credited 
to his account, his account was balanced and closed, and his Present Worth 
(Plate 61) of $12,703.60 is what the business of the Clovermead Farmstead is 
owing him at this time, therefore, it is a Liability of the business, and by footing 
both the Resources and Liabilities we find they equal each other. 

The books are in balance, and a glance at this simple statement, or the 
statement taken from any Ledger, at the end of the year, will show the owner 
of the business what cash he has on hand and in bank, who is owing him, either 
by Bills Receivable or open account, and the amount of grain, live-stock, imple- 
ments, feed, or anything else he may have of value belonging to him. 

It also shows him what he owes, and to whom; and his actual and absolute 
net worth. Further, the Losses and Gains taken from the "Loss and Gain" ac- 
count (Plates 90 and 91) will show him the total General Expense; the amount 
of cash paid out for Feed; the percentage of depreciation charged to Loss and 
Gain on his Farm Implements; what amount he paid for Labor; how much his 
Interest amounted to; and the Taxes and Insurance for the year. 

The above are entered under "Losses," because they are non-productive ac- 
counts — nothing can be realized on them in cash. 

But under "Gains" we have Production, $4,043.50; and this amount .represents 
everything having a cash value that left the farm during the entire year— the 
total sales. 

Now, $4,043.50 being the total proceeds of the sales, that amount, less the 
sum total of the "Losses," will be the net gain of the Proprietor— Fox. 

The whole cost of conducting this farm for the year, including general 



HOW TO KEEP FARM ACCOUNTS 135 



"Expenses," "Feed," "Labor," "Interest," "Taxes" and "Insurance," and the de- 
preciation of "Implements," was $1,919.93. By deducting this from the "Gains" 
(total sales), we have $2,123.57, or, the net gain of Fox for the year. 

The annual statement, then, is the final summing up of the year's business 
on the farmstead, and is a most valuable guide to every thinking farmer. 

225. And now, if we want to know what percentage of net gain Fox made 
on his investment, add two ciphers to his net gain, as shown by the "Loss and 
Gain" account, and divide it by the net amount of his investment. This would 
be 21235700 divided by 1 024631, showing a percentage of 20.72. 



Part Seven 

COST OF PRODUCTION 



The value of knowing what it costs to 
produce the products on your farm, lies 
wholly in the possibility afforded by its 
use in comparing your system of farm 
management with that of others. 



HOW TO KEEP FARM ACCOUNTS 141 



APPROXIMATE COSTS 

22514. The purpose of this book is to teach a simple and easily kept system 
of accounts which will be usable on the farm— one that is possible on all farms, 
and one which may be easily modified to suit your individual needs and the needs 
of your crop rotation. 

Agriculture is a complex proposition. The different crops, live stock, and 
maintenance of fertility are peculiarly inter-dependent. Costs should be as- 
certained with due consideration of the farmstead as a whole. 

But with conditions as they are now and must be in actual farming, an 
elaborate system of cost accounts isn't possible. So let us consider, then, some- 
thing practical as to the cost of production and its relation to your conditions. 

The farmstead, and by farmstead we mean the land, buildings, and imple- 
ments, or equipment, are equivalent to the "plant" of the manufacturer. Therefore 
you will clearly see that the first cost or amount invested in the farmstead, forms 
the first element of productive costs. 

For, as already stated, good farming is a complex proposition Although, 
broadly speaking, agricultural science is simply the joining together of soil and 
seed, yet in reality, you, if truly successful, must have a wider knowledge than is 
required for success in any other business. 

Hence it is that you plan a crop rotation which will increase the fertility 
of the land— either adapting your crops to your live-stock, or your live-stock to 
your crops, as will best suit the market you are striving for. The fertility of 
your farm must be increased if any money is made, for there is no profit in 
average farming. 

What we wish to impress is this fact; that your farmstead with its com- 
plement of live-stock and its proper handling is so closely related, that all or- 
dinary cost systems would fail. 

But as the cost of production is useful in comparing different systems of 
farm management, how can you keep your books to determine it? 

In the following pages is presented a method by which this may be done 
without needless detail. 

The principal factor in finding the result of your management is the cost per 
acre for the year, and this you can get from your ledger in this manner. 

TO OBTAIN THE APPROXIMATE COST PER ACRE OF GROWING 

DIFFERENT CROPS 

The amount invested in land, buildings, implements and live-stock form the 
first element of cost 

If you figure the interest at current rate in your locality on the sum total 
of these as shown by your inventory on the first of the year, and add the 
amount of interest on investment to the total sums paid out as shown by your 



142 HOW TO KEEP FARM ACCOUNTS 

accounts with Expenses, Taxes, Insurance and Labor for the year, plus the 
amount charged for depreciation cm Implements and Buildings, you will have 
the total amount of General Expenses of your farm for the year. This, divided 
by the number of acres in your farm, will give you the approximate cost per acre 
for the year. 

TO FIND THE APPROXIMATE COST PER BUSHEL OR TON OF ANY 

CROP 

To find the cost per bushel or ton of any crop, multiply the cost per acre 
by the number of acres used to grow it, and divide the result by the yield in 
bushels, or tons, the quotient will be the approximate cost of raising the crop per 
bushel or ton. 

TO LEARN WHAT IT COSTS TO GROW, MAINTAIN AND FATTEN 

LIVE-STOCK 

If, to your inventory of hay and grain, you add the amount paid out for 
feed, as shown by the Feed account for the year, and also the amounts harvested 
of hay and grain that you grow to feed during the year, and substract from this 
total the amount of the inventory of these crops that you have on hand when 
inventory is taken and books closed at the end of the year; the remainder will 
be approximately what you have fed to stock during the year. 

Then take the amount of General Expense and deduct from it the cost of 
growing the acres you have used in growing your crops. The remainder added 
to the amount fed to stock and this sum pro-rated according to the amount you 
have invested in different kinds of live-stock, will give you the approximate cost 
of growing and fattening your live-stock for the year. 

These amounts, aside from the General Expense of maintaining your farm, 
are only approximate, but they can be gotten from the Ledger and are valuable 
for reference in comparing your system of farm management with those of others. 
More than this isn't practical, and as the data required can be taken from the 
Ledger in a few minutes when books are closed, no detail is necessary. 

By using a page of your Ledger each year and writing the results under a 
general head, which may be termed Approximate Costs, you will have a record 
of your productive costs which may be referred to witli much benefit. 



Part Eight 

NUBS OF NOTES 

On Business Paper, Interest 

Tables, Rules Useful When Taking the Farm 

Inventory, Etc. Etc. 



BUSINESS PAPER 

226. If you receive a check or draft made payable to the order of the 
party sending it to you, and he has not endorsed it, it is worthless as far as you 
are concerned. Return it to the sender for endorsement. 

227. Should you have endorsed it before noticing the sender's failure to 
endorse, erase your name by drawing lines through it with a pen. 

228. If you discount notes at your bank, which have endorsers, do not 
waive protest, as the security may be released. 

229. When buying drafts always have them made payable to your own 
order, and then endorse them over to the person you wish to pay. 

230. All checks should be made payable "To Order." They cannot then 
be transferred without endorsement, and constitute in themselves the best receipt 
you can hold for money paid. This is one of the many reasons why you should 
have a bank account. 

231. Nowadays all checks are printed to read "Pay to the order of." If 
you want currency, simply write "Cash" after "Pay to order of." This is, in ef- 
fect, the same as making it payable to bearer. 

232. If a discrepancy exists between the amount as written in the body of 
the check, draft or note, and amount in figures in the margin, the former is held 
to be the intended amount. 

233. No particular form is necessary for a note, but it must contain an 
order to pay or promise to pay. 

234. The cancelled note you receive should never be destroyed — tear the 
signature through the middle and destroy the torn off piece. It isn't of any value 
then to anybody but yourself, and there may come a time when you will need it 
as a voucher. 

235. INDORSING CHECKS— If you wish to make a draft or check pay- 
able to another, write on the back, about three inches from the upper, or left- 
hand end, "Pay to order of," and the name of the part to whom you wish to send 
or give it, and then your own signature, just as it appears on the face. 

236. Never fill out a check except from your own check book, if you can 
possibly avoid it. 

237. Number and date each check properly, and make a corresponding 
entry on the stub of your check book. 

238. Always make a check payable to the order of the person to whom it 
is given. If in doubt ask him if he is acquainted at the bank, and if he is not, 
have him endorse the check in your presence and write your own name under 
his. This saves him the trouble of having to get someone to identify him. 



146 



HOW TO KEEP FARM ACCOUNTS 



239. Write the amount in the body of the check distinctly, beginning at 
the extreme left of the line used for that purpose. This prevents a subsequent 
holder from inserting a word or two before the amount and thus "raising" it. 

240. Never date a check ahead or give a check for more than your bank 
balance, expecting to have enough in the bank by the time it is presented to 
meet it. 

241. To write a check tor fractional parts of a dollar, as, for instance, 
60 cents, write Sixty Cents, and draw your pen through the printed word Dollars. 

242. Never give a check with the condition that it is not to be used until a 
certain time — that is dated ahead. 

243. When depositing a check write on the back "For Deposit" over your 
signature. 

244. Never make deposits without your bank book. 

245. STOPPING PAYMENT ON CHECKS— If you desire to stop the 

payment of a check that you have given, notify your bank at once — lose no time— 
and give the bank full particulars. You cannot stop payment of a check that has 
been "Certified." 

246. NOTES ENDORSED OVER TO YOU— If you receive a note made 
payable to another and endorsed over to you. be careful to notice whether any 
payments have been endorsed on it — a note is only worth its face less the pay- 
ments made on it. 

247. FORMS OF BUSINESS PAPER— The forms oi paper used in the 
ordinary course of business follow. The general farmer doesn't have a great 
variety of business paper to handle, yet the following may be useful for reference: 



248. RECEIPT TO APPLY ON ACCOUNT— 



$2 


I0.7S 








Hudson, 


Ohio, July 12, 


1900. 


Received of. , 
Two Hundred & 


75" 


TOO. 






W 


H. Brown . . . 








to 


apply 


on account. 


























\\ 


'. I. 


CHAMBERLAIN. 



249. RECEIPT IN FULL ON ACCOUNT— 



$36.20 








Chicago 


. III., 


March 3, 


IQOI, 


Recived 
Thirty-Six 
in full of ac 


of 

20-100. . 






John 


Johnson 




Dollars 


count to date. 














SANDERS 


PUBLISHING 


CO. 



HOW TO KEEP FARM ACCOUNTS 



147 



250. RECEIPT FOR PAYMENT ON NOTE— 



$100.00 Standish, Mich., Jan. 9, ^901. 

Received of E. H. Mohr 

One Hundred Dollars, 

as a partial payment on his note under date Oct. 13, 1899, 
for Five Hundred Dollars, payable to me. 

JOHN LIVINGSTON. 



251. DUE BILL— 



$12.00 

Due 

Twelve 


Co 


umbus 


Grove, 


Ohio, June 8, 1900. 
.Ed Wise 




on demand. 








JOHN FOX. 



252. ORDINARY PROMISSORY NOTE— 



$500.00 Newark, Ohio, May 16, 1901. 

Sixty days afer date, I promise to pay Frederick Weise 

or order Five Hundred Dollars, 

value received, with interest. Payable at First National 



Bank. 



JOHN FOX. 



253. JOINT NOTE— 



$200.00 Osborn, Ohio, August 10, 1900. 

Ninety days after date, we promise to pay John M. 

Jamison or order Two Hundred Dollars, 

value received, with interest, at First National Bank. 

HENRY BERGH. 

EDWARD TAYLOR. 



254. BANK NOTE- 



$300.00 Lima, Ohio, April 10, 1900. 

Ninety days after date I promise to pay W. E. 

Harding, cashier, or order Three Hundred Dollars, 

value received, with interest. Payable at Farmers' Na- 
tional Bank. 

JACOB ASH. 
Endorsed on back by Frederick Williams, A. H. Wells. 



148 HOW TO KEEP FARM ACCOUNTS 

TO MEASURE CORN 

255. ON COB — Two heaping bushels of corn on the cob will make one 
struck bushel of shelled corn. Some claim that one and one-half bushels of 
ear will make one bushel of shelled corn. Much will depend upon the kind of 
corn, shape of the ear, size of the cob, etc. 

256. IN CRIB — To measure corn in a crib, multiply the length of the crib 
in inches by the width in inches, and that by the height of the corn in the crib 
in inches, and divide the product by 2,748, and the quotient will be the number 
of heaped bushels of ears. If the crib flares at the sides, measure the width at 
the top and also at the bottom, add the two sums together, and divide by 2, which 
will make the mean width. 

257. CORN SHRINKAGE— Corn will shrink Jrom the time it is husked 
in the autumn, in well-protected cribs, from 20 to 30 per cent, by spring. That 
is, 100 bushels will shrink to 70 or 80, according to how dry it was when cribbed. 

GRAIN IN BINS 

258. TO MEASURE GRAIN IN BINS— Multiply the length of the bin 
in inches by the width in inches, and that by the height in inches, and divide 
by 2,150 for struck bushels, and by 2,748 for heaped bushels. The quotient will 
be the number of bushels contained in the bin. 

259. To find the amount of grain in a bin — take four-fifths of the number of 
cubic feet. 

260. Agricultural reports estimate that new wheat shrinks 6 per cent, in 
six months. Hence, 94 cents in August is equal to $1.00 in February. 

MEASUREMENT OF HAY 

261. The only exact method of measuring hay is to weigh it, but the rules 
given below will be found sufficiently exact when taking the inventory. 

262. TO FIND THE NUMBER OF TONS OF MEADOW HAY IN 
WINDROWS — Multiply together the length, breadth and height, in yards, and 
divide the product by 25. The quotient will be the number of tons in the 
windrow. 

263. TO FIND THE NUMBER OF TONS OF HAY IN A MOW— 
Multiply together the length, height and width in yards, and divide by 15 if the 
hay be well packed. If the mow be shallow, and the hay recently placed therein, 
divide by 18, and by any number from 15 to 18, according as the hay is well 
packed. 

264. TO FIND THE NUMBER OF TONS OF HAY IN SQUARE OR 
LONG STACKS— Multiply the length of the base in yards by half the width in 
yards, and that by half the height in yards, and divide by 15. 

265. TO FIND THE NUMBER OF TONS OF HAY IN A LOAD— 

Multiply together the length, width and height, in yards, and divide the product 
by 20. 



HOW TO KEEP FARM ACCOUNTS 149 

266. TO MEASURE HAY IN STACK— The area of the base multiplied 
by the perpendicular height to eaves, plus one-third the perpendicular height 
from eaves to crest, will give the number of cubic feet in a stack, the sides of 
which are perpendicular to a greater or less height. If the stack slopes uniformly 
from base to crest, then multiply the area of the base by one-third of the per- 
pendicular height. To find the area of the base, divide the distance around it by 
3.1416, take one-half of the result and square it, then multiply by 3.1416. The 
number of cubic feet necessary for a ton of good, well-settled hay is about 450. 

267. ANOTHER METHOD— Measure the stack for length, width and the 
"over." To get the "over," throw a tape-line over the stack at an average place 
from ground to ground, drawing it tightly. Multiply the width by the "over," and 
divide the result by 4; multiply the result of the division by the length for approxi- 
mate cubical contents of the stack. To reduce to tons for hay that has stood in 
stack for less than twenty days, divide cubical contents by 512; for more than 
twenty days and less than sixty days, divide cubical contents by 422; for more 
than sixty days, divide by 380. 

268. TO .FIND THE VALUE OF PRODUCTS SOLD BY THE TON 
AT A GIVEN PRICE — To ascertain the value of a given number of pounds of 
hay, straw or other commodity sold at a given price per ton, multiply the num- 
ber of pounds by one-half the price per ton, and point off three figures from 
the right. The result will be the price of the article. 

MEASUREMENT OF WOOD 

269. A cord of wood contains 128 cubic feet. To ascertain how many 
cords there are in a pile of wood, multiply the length by the height, and that 
by the width and divide the product by 128. 



150 



HOW TO KEEP FARM ACCOUNTS 



270. SIX PER CENT. INTEREST TABLE- 



Time. 


1 $1 


1 $2 


1 $3 


1 $d | $q 


$6 | $io 


$20 


$50 


$100 


$1000 


Days 


i 








o 


o 














1 


2 


17 


" 


2 


o 








o 











1 


2 


3 


38 


it 


3 






















1 


3 


5 


50 


" 


4 











o 





o 




1 


3 


7 


67 


" 


5 





















2 


4 


8 


83 


ct 


6 




















2 


5 


10 


1 00 


" 


7 








o 


o 








2 


6 


12 


1 17 


a 


8 








o 


i 








3 


7 


13 


1 33 


1 


9 





o 





i 






2 


3 


8 


15 


1 50 


" 


10 








I 


i 






2 


3 


8 


17 


1 67 


tt 


15 







I 


i 




2 


3 


5 


13 


25 


2 50 


" 


20 







I 


i 


2 


2 


3 


7 


17 


33 


3 33 


a 


25 







I 


2 


2 


2 


4 


8 


21 


42 


4 17 


" 


30 


I 




2 


2 


3 


3 


5 


10 


25 


50 


5 00 


" 


33 


I 




2 


2 


3 


3 


6 


11 


28 


55 


5 50 


" 


63 


I 


2 


3 


4 


5 


6 


11 


21 


53 


1 05 


10 50 


li 


93 


2 


3 


5 


6 


8 


9 


16 


3i 


78 


1 55 


15 50 


Months 


I 


I 


I 


2 


2 


3 


3 


5 


10 


25 


50 


5 00 


" 


2 


I 


2 


3 


4 


5 


6 


10 


20 


50 


1 00 


10 00 


" 


3 


2 


3 


5 


6 


8 


9 


15 


30 


75 


1 50 


15 00 


" 


4 


2 


4 


6 


8 


10 


12 


20 


40 


1 00 


2 00 


20 00 


" 


5 


3 


5 


8 


10 


13 


15 


25 


50 


1 25 


2 50 


25 00 


" 


6 


3 


6 


9 


12 


15 


18 


30 


60 


1 50 


3 00 


30 00 


u 


7 


4 


7 


ii 


14 


18 


21 


35 


70 


1 75 


3 50 


35 00 


a 


8 


4 


8 


12 


18 


20 


24 


40 


80 


2 00 


4 00 


40 00 


" 


9 


5 


9 


14 


18 


23 


27 


45 


90 


2 25 


4 50 


45 00 


" 


IO 


5 


10 


15 


20 


25 


30 


50 


1 00 


2 50 


5 00 


50 00 


" 


ii 


6 


ii 


i/ 


22 


28 


33 


. 55 


1 10 


2 75 


5 50 


55 00 


" 


12 


6 


12 


18 


24 


30 


36 


60 


1 20 


3 00 


6 00 


60 00 



271. INTEREST TABLE— 

Th following will be found convenient in the absence of extended interest 
tables: 

To find the interest on a given sum, for any number of days, at any rate of 
interest. 



At 5 per cent., mult 
At 6 per cent., mult 
At 7 per cent., mult 
At 8 per cent., mult 
At 10 per cent., mult 
At 12 per cent., mult 



ply the principal by the number of days and divide by 72 
ply the principal by the number of days and divide by 60 
ply the principal by the number of days and divide by 52 
ply the principal by the number of days and divide by 45 
ply the principal by the number of days and divide by 36 
ply the principal by the number of days and divide by 30 



GESTATION TABLE 
272. A tabic showing the period of gestation, or when colts, calves, lambs 
and pigs may be expected, the date of service being known. 



Time of 
Service 



Mares 
140 Days 



Cows 
283 Days 



Ewes 
150 Days 



Sows 
112 Days 



January 



February ... 5 

'• 10 

" 15 

" 20 



March 2 

•' 7 

" 12 

" 17 

" 22 

" 27 

April 1 

" 6 

" 11 

" 16 

" 21 

" 26 

May 1 

" 6 

" 11 

" 16 

" 21 

" 26 

" 31 

June 5 

" 10 

" 15 

" 20 

" 25 

" 30 

July 5 

" 10 

" 15 

" 20 

" 25 

" 30 

August 4 

" 9 

" 14 

" 19 

" 24 

" 29 

September . . 3 



" 13 

" 23 

" 28 

October 3 

" 8 

" 13 

" 18 

" 23 



November . . 2 

" 7 

" 12 

" 17 

" 22 

" 27 

December ... 2 



.12 
.17 
.22 
.27 
.31 



December 


. . 6 


'• 


. .11 


" 


16 


" ... 


, U 


" 


2 6 


" 


31 


Januarv . . 


. . 5 


• * 


. . 10 


'• 


. .15 


*' 


. .20 


■• 


. .25 


" 


. .30 


February . 


. . 4 




. . 9 


" 


14 


" 


. . 19 


" 


. .24 


March . . . . 


. . 1 


" 


. . 6 


** 


. . 11 


" 


. .16 




21 




. .26 


" 


31 


April 


. . 5 




. 10 




15 


" 


. 20 


" 


, ,35 


" 


. .30 




. . 5 


" 


10 


" 


15 


" 


. .20 


" 


25 


" 


30 


June 


. . 4 




9 


" 


. 14 


" 


. .19 


" 


. .24 


" 


. 29 


July 


9 




14 


" 


. ,19 


" 


?A 


" ... 


«9 




3 




. . 8 


" 


. .13 


" 


.18 


" 


23 


" 


?,R 


September 


. . ? 


" 


7 










" 


17 


" 


?,?, 


" 


27 


October . . . 





" 


7 


" 


12 


" 


,17 


" 


?,?, 


" 


27 


November . 


.. 1 


" 


. 6 


*' 


.11 


11 


,16 


" 


21 


" 


?6 


December . 


. 1 


" ... 


. 5 



October . . 


. .10 




. .15 


" 


. .20 


" 


. .25 


" 


. .30 


November 


. .. 4 


" 


. . 9 


" .... 


. .14 


" 


. .19 


" 


. .24 


" 


. .29 


December 


. . 4 


" 


. . 9 


" 


14 


" 


. .19 




. .24 


" 


. .29 


January . 


. . 3 


" 


. . 8 


" 


. .13 




. .18 




. .23 


" 


. .28 


February . 


. . 2 


" 


. . 7 


" 


. .12 


" 


. .17 


" 


22 


" 


. .27 


March .... 


. . 4 


" 


. . 9 


" 


. .14 


" 


. .19 


" 


. 24 


" 


29 


April 


. . 3 




s 


1 .", 




. .18 


" 


. .23 


" 


. .28 






** 


. . 8 


•* 


. .13 


" 


. .18 


" 


. .23 


" 


. 28 




. . 2 


" 


17 


" 


. .12 


" 


. .17 


" 


n 


" 


?,7 


July 


. . 2 


" ... 


. . 7 


" 


. .12 


" ... 


. .17 


" 


. .22 


" ... 


. .27 


August . . . 


. . 1 


" 


. . 6 


" 


. .11 


" ... 


. .16 


" ... 


. .21 


" 


. .26 


*i 


. .31 


September 


. . 5 


" ... 


, 10 


" 


. .15 


" 


. .20 


" 


. i!S 


" 


. .30 


October . . 


. . 5 








. . 9 



May 30 

June 4 

" 9 

" 14 

" 19 

" 24 

" 29 

July 4 

" 9 

" 14 

" 19 

" 24 

" 29 

August 3 

" 8 

" 13 

- 18 

" 23 

" 28 

September . . 2 

" 7 

" 12 

" 17 

" 22 

" 27 

October 2 

" 7 

" 12 

" 17 

" 22 

" 27 

November ... 1 

" 6 

" 11 

" 16 

" 21 

" 26 

December ... 1 

" 6 

" 11 

" 16 

" 21 

" 26 

" 31 

January .... 5 

" 10 

" 15 

" 20 

" 25 

" 30 

February ... 4 

" 9 

" 14 

" 19 

" 24 

March 1 

" 6 

" 11 

" 16 

" 21 

" 26 

" 31 

April 5 

" 10 

" 15 

" 20 

" 25 

" 30 

May 5 

" 10 

" 15 

" 20 

" 25 

" 29 





?: 




2 




7 


" 


12 


" 


17 


" 


??, 


" 


27 


June 


1 


" 


6 


" 


. ,11 


" 


16 


" 


21 


" 


26 


July 


1 


•< 


. . 6 


" 


11 


" 


16 


" 


21 


" 


26 


" 


31 


August . . . 


. . » 


" 


. .10 


" 


15 


" 


?n 


" 


?5 


«» 


. .30 


September 


. . 4 


" 


. . 9 


" 


14 


" 


19 


" 


24 


" 


29 


October . .. 


4 


■* 


. . 9 


" 


14 


" 


19 


" 


«4 


<« 


. .29 


November . 


. 3 


" 


. 8 


" 


.13 


" 


.18 


" 


,23 


" 


;>s 


December . 


. 3 


«« 


S 


■■ 


13 


" 


18 




.23 


" 


28 


January . . 


. 2 






" 


18 


" 


17 


«< 


22 


•• 


27 


February . 


. 1 




. 6 


•• 


11 


" 


16 


" 


?A 


" 


26 


March .... 


3 


" 


S 


" 


13 


" 


23 


" 


?S 


April 


2 


•' 


'1 


" 


1" 


" 


17 


" 


21 



The first column gives date of service. 
ferent columns headed Mares, Cows, etc., is 
expected from such service. 



On the same line, under the dif- 
given the date the progeny may be 



273. WEIGHTS AND MEASURES— 

Avoirdupois or Commercial Weight 

16 drams =i ounce 

16 ounces ^i pound 

25 pounds =1 quarter 

4 quarters or 100 pounds =1 hundredweight 

20 hundredweight or 2000 lbs =1 ton 

Troy or Jewelers' Weight 

24 grains =1 pennyweight 

20 pennyweights =1 ounce 

12 ounces =I pound 

Apothecaries' Weight 

20 grains =1 scruple 

-3 scruples =I dram 

8 drams =1 ounce 

12 ounces =1 pound 

Dry Measure 

2 pints =I quart 

8 quarts =I pec k 

4 pecks =I bushel 

8 bushels (480 pounds) =1 quarter 

36 bushels =I chaldron 

Liquid Measure 

4 gills =1 pint 

2 pints =1 quart 

4 quarts =j gallon 

31V2 gallons =1 barrel 

2 barrels, or 63 gallons =1 hogshead 

Apothecaries' Fluid Measure 

60 miliums =j fluid dram 

8 fluid drams =I fluid ounce 

16 fluid ounces =1 pint 

8 Pints =I gallon 

Line or Linear Measure 

1 2 inches =1 foot 

3 feet =1 yard 

S l A yards or \6V 2 feet =1 rod or pole 

40 rods — x furlong 

8 furlongs = T mile (statute mile) 

3 miles =I league 

Surveyors' or Chain Measure 

7.92 inches =1 link 

25 links =1 rod or pole 

4 rods or 66 feet =1 chain 

80 chains =1 mile 

Square or Surface Measure 

144 square inches =1 square foot 

9 square feet =1 square yard 

30 Y A square yards. =1 square rod or perch 

160 square rods =1 acre 

640 acres =1 square mile or section 

Surveyors' Square Measure 

625 square links =1 square rod or pole 

16 poles =1 square chain 

to square chains =i acre 

640 acres =1 square mile or section 

36 square miles (6 miles square) =1 township 

Solid or Cubic Measure 

1 728 cubic inches =1 cubic foot 

27 cubic feet =1 cubic yard 

16 cubic feet =I C ord foot 

8 cord feet or 128 cubic feet =1 cord of wood 

2434 cubic feet =1 perch 



LIBRARY OF CONGRESS 



0D0E7?fi^77fl 



